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

* LBO Drivers

* Purchase Price

* Debt Quantum

* Interest Rate

* Synergies

* Exit Price

* Dividend Recap 

* Walk through of an LBO

* 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

* 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 [email protected] 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