LBO (Eng)

It’s becoming increasingly common for recruiters to include a financial modelling test in excel as part of the assessment.

We have created a fully comprehensive financial modelling course to give you the confidence to grasp the key drivers for each sector, and to stand out in this stage of the interview process, or to excel in your job if you are already working in Private Equity.

Learn everything you need to know about LBOs (Leveraged Buyouts), how to structure the model, and create a flexible and robust spreasheet.

The purchase of this course includes the Excel for financial modellers and  introduction to financial modelling courses.

We strongly recommend this course as prep work for the modeling expert in private equity exam (modex pe)




Learn everything you need to know to build an LBO model (Leveraged Buyout)

In this course you will learn to build an LBO model, as used by private equity professionals, from scratch, and to evaluate an opportunity with this type of highly leveraged structure.

The purchase of this course includes the Excel for financial modellers module, and the introduction to financial modelling.

The content of this course is ideal as prep work to sit the modex pe (modelling expert in private equity) certification.


A leveraged buyouts (LBO) is a type of structure which consists of acquiring a company with a significant amount of debt. These type of transactions are frequent among private equity investors.

With this LBO course you will learn to:

  • Structure a clear and complete financial model from scratch, with assumptions, projections, scenarios, valuation and presentation of graphs, always using the best practices in the industry.
  • Calculate the cash flow and how to isolate the  free cash flow (FCF) to understand the structure and returns to each type of investor.

Paula Gómez Medina

Paula Gomez Medina has been working in the financial sector for more than 18 years. She started her career at ABN AMRO (London) as an Investment Banking analyst and continued her professional development at GE Capital, in numerous divisions such as Real Estate, Leasing, Private Equity , consumer lending and others. In 2004, he undertook the project of developing financial models and training. and since then he has been specializing in this skill, above all but not exclusively in Private Equity projects.


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Course contents

This course consists of 24 recorded online lessons with a total recorded duration of 3 hours. It should take you between 20 to 30 hours to complete the course and grasp the materials.

In addition, you can download the excel materials in excel to practice and follow the online course.

Chapter 1: Introduction to the LBO course

A brief introduction to the course and its objectives.

Duration: 8:52

Chapter 2: Structure of the model

In this chapter we describe how to structure our LBO model.

Duration: 6:33

Chapter 3: Structure of the model – Financial statements I

In this chapter we will create the financial statements and the integration.

Duration: 8:57

Chapter 4: Structure of the model – Financial statements II

In this module we will continue with the structure of the model, the balance sheet and the statement of cash flows.

Duration: 3:36

Chapter 5: Theory and formulas on which the evaluation is based

We will explain how to calculate the revenues and the forecast, and the impact on the balance sheet depending on the payment terms to our customers.

Duration: 8:16

Chapter 6: Cost of goods sold (COGS) – Inventory – Accounts payable

Learn the link between the costs of goods sold, inventory and payment terms to suppliers.

Duration: 7:52

Chapter 7: Operating expenses – Payment terms

Understand what operating expenses are, how to model them, and how to reflect the payment terms on the balance sheet.

Duration: 5:39

Chapter 8: Depreciation – Net fixed assets and capital expenditure

Most business require a significant investment in fixed assets, we will explain how to model them and cascade de impact on the statements

Duration: 10:18

Chapter 9: Taxes

The tax calculation in this course is quite straight forward. Tax calculations can be complex, but in this course we will not go into a detail approach.

Duration: 2:12

Chapter 10: Scenarios on Operating Assumptions

Creating scenarios is crucial to understand a range of possible outcomes. Here you will learn how to do that.

Duration: 8:21

Chapter 11: Historical capital structure

To finalize the forecast, we enter the historical capital structure. This will help you to understand the change of structure after the acquisition.

Duration: 6:56

Chapter 12 – Historical interest on debt and free cash flow without debt

We arrive to the free cash flow generated by the company without leverage, to then assess the ability to repay on the new debt terms.

Duration: 5:21

Chapter 13: Valuation

Simple valuation of this company, using the discounted cash flow discount method (DFC)

Duration: 7:10

Chapter 14: Sources and uses

You will learn to create a dashboard to structure this type of transactions.

Duration: 12:54

Chapter 15: What is an LBO?

Explanation of the concept of what an LBO is and what are the factors that create value.

Duration: 12:48

Chapter 16- Sources and Uses in our model.

We create the sources and uses cockpit in our LBO model

Chapter 17: Senior debt

Description of this instrument, and how to model it

Duration: 10:51


Duration: 8:56

Chapter 18: Debt Mezzanine

Description and how to model this instrument and its particularities (PIK)

Duration: 13:30

Chapter 19 – New Equity (Management and Sponsor)

We add the new equity (both management and sponsor) to finalize the sources of the model, and reflect the new capital structure after the transaction.

Duration: 5:01

Chapter 20 – Uses in the model

It is important to understand what payments need to be made to acquire the company, and how to reflect them correctly.


Chapter 21: Cash Sweep

Learn how to calculate a box sweep in the model, without the circular references and step by step.

Duration: 14:10

Chapter 22: Revolver

We add a revolver to allow short-term cash limitations in the company. It is a bit complicated to calculate and in this class we explain how to do it.

Duration: 16:25

Chapter 23: Mezz Exit and Return

Learn how to calculate the return for each investor, starting with the Mezzanine debt.

Duration: 19:51

Chapter 24: Exit for Sponsor and Management

Learn to calculate the return for the Sponsor and Management.

Duration: 19:51


The classes are 100% practical and contain references and study materials. (Excel sheets with LBO files and solutions)
As a bonus, the video of a Henry Kravis (KKR) conference on LBOs is added.

Who is this online course for?

Students and professionals either interested, or already working in, the investment sector (e.g. private equity). We assume that you already have some basic financial knowledge and excel command.

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