Building a Complex LBO Model From Scratch in 45 Minutes | Ex-UBS M&A Banker

A leveraged buyout, or LBO, tells you the most a private equity firm can pay for a company and still hit its target return. That makes it the floor under every other valuation. We dive into a relatively complex LBO by incorporating a revolving credit facility, PIK note and dividend recap. This is part of a full M&A model I built for Nestlé's hypothetical acquisition of Danone, starting from a blank workbook. 💼 Work with me 1:1 to secure an investment banking offer ► https://www.neverbanked.com 𝄜 Free Excel Template to follow along (incl. solutions) ► https://drive.google.com/drive/folder... 📄 Free AI Workflows for this stage ► https://app.notion.com/p/3aff6a82af0b... 📰 My story (HSG feature) ► https://www.unisg.ch/en/studying/prog... ⏱️ Timestamps 0:00 – Intro: what an LBO tells you 1:07 – How the LBO tab is structured 3:01 – Transaction assumptions and the target return 4:13 – The debt structure: revolver, term loans and PIK note 7:50 – Entry valuation and the offer premium 11:44 – Sources and uses, and sponsor equity 15:09 – Cash flow available for debt service 19:27 – The debt schedule and cash sweep 21:30 – Average balances and the built-in circularity 25:40 – Dividend recap 27:56 – The PIK note and accrued interest 30:15 – The circularity switch and leverage checks 33:51 – Exit returns: money multiple and IRR 37:51 – Reverse-solving the price a sponsor can pay 41:52 – Sensitivity tables 44:31 – Recap and what's next 📲 Let's connect ► Instagram:   / bankwithnico   ► TikTok:   / bankwithnico   ► LinkedIn (personal):   / nicolas-schwarz-890797132   ► LinkedIn (NeverBanked):   / 116048963   ► Facebook: https://www.facebook.com/profile.php?... ► Business inquiries: nico@neverbanked.com #investmentbanking #privateequity #lbo #financialmodeling #excel ⚠️ Disclaimer For educational purposes only. Reflects my own experience and opinions, not those of any current or former employer. Case studies are hypothetical. No transaction has been proposed, announced, or is known to me. It uses only publicly available information as at the date of recording, and no confidential or non-public information. Some figures and assumptions are illustrative and provided without warranty as to accuracy or completeness. Models rest on subjective assumptions and may contain errors. Nothing here is investment, financial, legal, tax or career advice, nor a recommendation to buy or sell any security, and nothing guarantees an interview, internship or offer. Do your own research and seek independent advice.