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TVS 016 – Leveraged Buy Outs

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TVS 016 – Leveraged Buy Outs

Hope everyone had a great labor day weekend! Today we are going to be talking about Leveraged Buy Outs, another form of valuation and modeling. As promised, please see a link to th ...

Hope everyone had a great labor day weekend! Today we are going to be talking about Leveraged Buy Outs, another form of valuation and modeling. As promised, please see a link to the actual model of an LBO, and a more detailed explanation in case you are interested.

LBO Model

LBO Detailed Overview

  1. LBO Drivers
    • Purchase Price
    • Debt Quantum
    • Interest Rate
    • Synergies
    • Exit Price
    • Dividend Recap 
  2. Walk through of an LBO
  3. Types of companies that are good LBO Candidates
    • High Cash Flow Generating
    • Stable and predictable business
    • Companies where you can cut costs
    • Low CapEx business
  4. How buying a home is similar to an LBO transaction

As always, please let me know if you have any questions, comments, or suggestions. Email me directly at alan@thevampiresquid.com or on the contact form. Also, please subscribe to my facebook page for live updates facebook.com/thevampiresquid. Also follow me on Quora at https://www.quora.com/profile/Alan-Li-1

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