Easy LBO Model-PC

This is the first model you should practice with to begin your Private Credit LBO modeling preparation. 

Take as much time as you need for the first pass, really try to think about how to model out the scenario.

Please note, this is practically identical to the 'Easy LBO Model-PE' with the primary difference being the requirement to model the returns for the lender vs. the equityholder. 

Goal: complete the template in under 30 minutes, model from a blank sheet in under 45 minutes. 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:

1. Download the prompt and use the attached template to assist your modeling 
2. Take a minute to look through the different sections of the model to understand where inputs may be flowing and where outputs are coming from
3. Work the model top-down filling in the assumptions section, then the sources & uses, etc. You should only have to fill out the cells colored light gray 
4. After a first try, open up the answer file and really study the underlying formulas and the levers to impact returns
5. Attempt the template again. After completing the template with no assistance from the answer file, open up a blank excel and try to build a model from scratch to answer the prompt

The_Pulse_LBO_Model_Easy_Prompt PC.docx

The_Pulse_LBO_Model_Easy_PC.xlsx

The_Pulse_LBO_Easy_Answer_PC.xlsx

📌Password: Buyside📌

Tip: modeling lender returns is very similar to modeling equity returns. However, you must be mindful of the intermittent cash flows owed to lenders which may or may not be applicable to equityholders.