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    WSP Paper LBO - VF

    Uploaded by

    jason.sevin02
    The document provides a template for modeling a leveraged buyout (LBO) transaction. It includes sections for specifying the entry valuation and operating assumptions, sources and uses of funds, financial projections, exit valuation, and return metrics. Key details in the template include fields for purchase price, debt and equity amounts, annual revenue and EBITDA forecasts, capital expenditures, tax rates, and calculations for exit value and investor returns.

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    WSP Paper LBO - VF

    Uploaded by

    jason.sevin02
    79 views11 pages
    The document provides a template for modeling a leveraged buyout (LBO) transaction. It includes sections for specifying the entry valuation and operating assumptions, sources and uses of funds, financial projections, exit valuation, and return metrics. Key details in the template include fields for purchase price, debt and equity amounts, annual revenue and EBITDA forecasts, capital expenditures, tax rates, and calculations for exit value and investor returns.

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    WSP-Paper-LBO_vF

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    The document provides a template for modeling a leveraged buyout (LBO) transaction. It includes sections for specifying the entry valuation and operating assumptions, sources and uses of funds, financial projections, exit valuation, and return metrics. Key details in the template include fields for purchase price, debt and equity amounts, annual revenue and EBITDA forecasts, capital expenditures, tax rates, and calculations for exit value and investor returns.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    79 views11 pages

    WSP Paper LBO - VF

    Uploaded by

    jason.sevin02
    The document provides a template for modeling a leveraged buyout (LBO) transaction. It includes sections for specifying the entry valuation and operating assumptions, sources and uses of funds, financial projections, exit valuation, and return metrics. Key details in the template include fields for purchase price, debt and equity amounts, annual revenue and EBITDA forecasts, capital expenditures, tax rates, and calculations for exit value and investor returns.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 11

    Paper LBO Template

    Further Reading → The Paper LBO

    Disclaimer: The enclosed model is proprietary to Wall Street Prep and designed fo
    purposes only. For more information about our online self-study course offerings and
    us at 800-646-3575 or visit us online at wallstreetprep.co

    © 2023 Wall Street Prep, Inc. All Rights Reserved


    Online Self-Stu

    Instructor-Led B

    per LBO
    1:1 Private

    p and designed for illustrative and training Free Guides an


    urse offerings and training programs, contact
    t wallstreetprep.com.

    Template L
    ts Reserved
    Online Self-Study Courses

    Instructor-Led Boot Camps

    1:1 Private Lessons

    Free Guides and Lessons

    Template Library
    Paper LBO Model
    ($ in millions)

    Entry Valuation Operating Assumptions


    LTM EBITDA LTM Revenue
    (×) Entry Multiple Annual Revenue Growth (%)
    Purchase Enterprise Value (TEV) EBITDA Margin (%)
    D&A % of Revenue
    Capex % of Revenue
    Δ in Net Working Capital (NWC)
    Leverage Ratio
    Interest Rate (%)
    Tax Rate (%)

    Sources and Uses of Funds


    Sources Uses
    Initial LBO Debt Purchase Enterprise Value (TEV)
    Sponsor Equity
    Total Sources Total Uses

    Financial Forecast Year 1 Year 2 Year 3


    Revenue

    EBITDA
    (–) D&A
    EBIT
    (–) Interest Expense
    EBT
    (–) Taxes
    Net Income

    Free Cash Flow Year 1 Year 2 Year 3


    Net Income
    (+) D&A
    (–) Capex
    (–) Δ in NWC
    Free Cash Flow (FCF)
    Exit Valuation Return Metrics
    Exit EBITDA (Year 5) Multiple on Invested Capital (MOI
    (×) Exit Multiple Internal Rate of Return (IRR)
    Exit Enterprise Value (TEV)

    Initial LBO Debt


    (–) Cumulative FCF
    Ending Net Debt

    Exit Equity Value


    ng Assumptions

    Revenue Growth (%)


    Margin (%)
    of Revenue
    of Revenue
    t Working Capital (NWC)

    Uses
    e Enterprise Value (TEV)

    Year 4 Year 5

    Year 4 Year 5
    on Invested Capital (MOIC)
    Rate of Return (IRR)
    Paper LBO Model
    ($ in millions)

    Entry Valuation Operating Assumptions


    LTM EBITDA $50 LTM Revenue
    (×) Entry Multiple 10.0x Annual Revenue Growth (%)
    Purchase Enterprise Value (TEV) $500 EBITDA Margin (%)
    D&A % of Revenue
    Capex % of Revenue
    Δ in Net Working Capital (NWC)
    Leverage Ratio
    Interest Rate (%)
    Tax Rate (%)

    Sources and Uses of Funds


    Sources Uses
    Initial LBO Debt $300 Purchase Enterprise Value (TEV)
    Sponsor Equity 200
    Total Sources $500 Total Uses

    Financial Forecast Year 1 Year 2 Year 3


    Revenue $110 $120 $130

    EBITDA $55 $60 $65


    (–) D&A (5) (5) (5)
    EBIT $50 $55 $60
    (–) Interest Expense (25) (25) (25)
    EBT $25 $30 $35
    (–) Taxes (5) (10) (10)
    Net Income $20 $20 $25

    Free Cash Flow Year 1 Year 2 Year 3


    Net Income $20 $20 $25
    (+) D&A 5 5 5
    (–) Capex (5) (5) (5)
    (–) Δ in NWC -- -- --
    Free Cash Flow (FCF) $20 $20 $25
    Exit Valuation Return Metrics
    Exit EBITDA (Year 5) $80 Multiple on Invested Capital (MOI
    (×) Exit Multiple 10.0x Internal Rate of Return (IRR)
    Exit Enterprise Value (TEV) $800

    Initial LBO Debt $300


    (–) Cumulative FCF (135)
    Ending Net Debt $165

    Exit Equity Value $635


    ng Assumptions
    $100
    Revenue Growth (%) 10.0%
    Margin (%) 50.0%
    of Revenue 5.0%
    of Revenue 5.0%
    t Working Capital (NWC) --
    6.0x
    8.0%
    25.0%

    Uses
    e Enterprise Value (TEV) $500

    $500

    Year 4 Year 5
    $145 $160

    $75 $80
    (5) (10)
    $70 $70
    (25) (25)
    $45 $45
    (10) (10)
    $35 $35

    Year 4 Year 5
    $35 $35
    5 10
    (5) (10)
    -- --
    $35 $35
    on Invested Capital (MOIC) 3.2x
    Rate of Return (IRR) 26.0%

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