The debt we have previously considered in other models is a). not realistic and b). incredibly simple. In reality, financing structures become very complex and are a major point of focus for most PE firms since financial engineering is an easy driver of returns.
This is not really a scenario on its own, but it's a better picture of how debt is truly structured in any given LBO transaction.
Remember, really try to figure things out on your own before 'cheating' with the answer sheet. Most of the newly introduced credit minutiae is written in plain English, don't overthink it.
Goal: complete the template in under 45 minutes, model from a blank sheet in under 1 hour. Try to summarize in 3 sentences or less why this would or would not be a good investment purely based on the output of the model.
Steps:
The_Pulse_LBO_Model_Debt_Other_Prompt.docx
The_Pulse_LBO_Model_Debt_Other.xlsx
The_Pulse_LBO_Model_Other_Debt_Answer.xlsx
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