************************************************************ Spreadsheet # 45 on http://www.exinfm.com/free_spreadsheets.html ************************************************************ I would be very interested in hearing comments about this LBO model from people who actually work with them. Alot of people here are asking where they can learn DCF modelling and about LBO models, so I think this could be an interesting conversation with a “live” example.
I think this is a very good learning model. Eventually, as you get more involved with LBO modeling, you’ll probably want to layer on additional scenarios and sensitivity analysis, as well as management-driven performance incentives…however, as a basic shell, this is great. Much better than most of the “templates” I’ve seen free online. It’s easy to follow and the links are clean, which is what people care about the most.
Numi txs for quick response. Did you already know this model or were a few minutes enough for you to recognise its quality ? 
Hadn’t seen it before but it only took a couple minutes to review. I checked some of the links and it looks like everything’s linked up correctly, from what I saw. It’s a good template.
Well that model was done by Aswath Damodaran, so I’m sure its good. Not pretty looking, but straightforward and easy to understand. A good stat I’ve read from HBR - total value of LBOs done towards the end of 2009 was 96% less than the peak in 2007.
^ Actually, the model he was referring to was #45, by John Burns. The other “LBO Valuation” model by Damodoran is not helpful for the dealmaking process and should not be used, as it’s really just a back-of-the-envelope calculator for approximate deal value…it’s not actually a transactional model with levers.
^^^^ # 3 “LBO Valuation” is way too simple and doesn’t have anough parameters for real life application in my opinion. Numi, what do you mean by levers ?
****dumping my thread since I just read a couple of posts requesting models*******