LBO MODELING COURSE
Introducing...
110+ Lessons, 12+ modules with Detailed Nike Case, 8+ hours of video lessons
To Help You Thrive in the Most Prestigious Jobs on Wall Street...
HERE’S JUST SOME OF WHAT YOU’LL GET IN THIS COURSE
LBO: The Big Picture (14 video lessons, 1 case)
In this module, there are 14 video lessons provided to introduce LBO to you at a very high level. You will be learning the fundamental theories in LBO before we dive into practices including leverage, debt paydown & return, key drivers of return and internal rate of return. This module wraps up with a "Paper LBO" exercise and a leveraged buyout of Nike case.
Sources and Uses: The Theory (14 video lessons)
In this module, we use 14 video lessons to provide you with an overview of sources and uses of cash in an acquisition, as well as help you build a robust understanding of fundamentals you need to know. You will be focusing on the theories, learning about key terms and definitions, but don't worry, the applications are in the next module...
P&L Projections & LBO Adjustments (3 video lessons)
In this module, there are 3 video lessons to walk you through some of the key changes in P&L and adjustments made for LBO. You will be given the opportunity to practise your modeling and linking skills for the income statement and cash flow statement.
Valuation and Transaction Assumptions (5 video lessons)
The 5 video lessons in module 2 provide you with a basic understanding of valuation and transaction assumptions we make when building LBOs. You will be learning adjusted EBITDA, acquisition multiple, building enterprise value to equity value, implied share price and other key assumptions.
Sources and Uses: Application to Nike Case (4 video lessons)
In this module, we will apply the fundamentals to a real-life application. This is the fun part...you will work on financing assumptions, fill in the uses and sources for the Nike case.
Debt Schedule (16 video lessons)
In this module, there are 16 video lessons that teach arguably the most important part of an LBO. This module provides a walkthrough on how to build a debt schedule in excel and also includes a variety of topics such as calculation of cash flow available for debt service, revolver schedule, subordinated debt schedule, credit metrics and so on.
Taxes (7 video lessons)
In module 9, there are 7 video lessons cover taxes and their impact on LBO. You will be learning about 2017 Tax Reform, discussing limitations around interest deductibility, calculating disallowed interest carryforward & accelerated Capex expensing, building Net Operating Losses, and completing the tax schedule.
Bonus Modules
Three bonus modules, 24 video lessons, 3 additional topics related to an LBO...They cover purchase price accounting, dividend recap and add-on acquisition build. Each bonus module will dive into its topic and discuss how each topic applies to an LBO specifically with excel model exercises.
WSO LBO Modeling Course - Video Preview
Course Summary - Table of Contents
Below you will find a list of the modules and lessons included in this course.
- Welcome
- Why learn this material?
- Course Prerequisites
- Course Overview
- Key Terms and Definitions
- How Leverage Magnifies Returns
- How Leverage Magnifies Losses
- Debt Paydown and Returns
- LBO at a High Level
- Commentary on Leverage
- Key Drivers of Return
- Internal Rate of Return
- IRR Functions in Excel
- IRR and Timing of Cash Flows
- IRR versus WACC
- Critiques of IRR
- What Makes a Good LBO?
- Simple LBO Example ("Paper LBO")
- The Case: Leveraged Buyout of Nike by Shoe Dog Capital
- Adjusted EBITDA at Acquisition
- Acquisition Multiple
- Building from Enterprise Value to Equity Value
- Implied Share Price
- Other Key Assumptions
- Overview of Uses
- Overview of Sources
- Key Terms: Liens and Amortization
- Key Terms: Interest Rates and Covenants
- Covenants
- Limits to Leverage at Acquisition
- Debt Tranche Overview
- Revolver
- Term Loans
- Senior Notes
- Subordinated Notes
- Mezzanine Financing
- Preferred Stock
- Debt Tranche Recap
- Financing Assumptions: Leverage Ratios
- Financing Assumption: Fees & OID
- Filling in the Uses
- Filling in the Sources
- Key Changes to P&L
- Linking the Income Statement
- Linking the Cash Flow Statement
- Introduction to Debt Schedule
- Calculating Cash Flow Available for Debt Service
- Creating the Revolver Schedule
- Creating the Term Loan Schedule
- Creating the Subordinated Debt Schedule
- Creating the Mezzanine Financing Schedule
- Creating the Preferred Stock Schedule
- Interest Expense – Floating Rates
- Interest Expense – Fixed Rates
- Financing Fees & OID
- Net Interest Expense and Circularity
- Preferred Stock Dividend
- Linking to Income and Cash Flow Statements
- Credit Metrics Overview
- Credit Metrics Memo Line
- Calculating the Credit Metrics
- Intro to the LBO Balance Sheet
- Linking Current Assets and Current Liabilities
- PP&E and Intangibles
- Debt
- Deferred Financing Fees and OID
- Preferred Stock
- Goodwill
- Equity
- Summary of 2017 Tax Reform
- Interest Deduction Limit
- Disallowed Interest Carryforward
- Accelerated Capex Expensing
- Depreciation Spend Foregone
- NOL Overview and Build
- Completing the Tax Schedule
- Calculating Equity Value at Exit
- Calculating Fully Diluted Shares
- Calculating Dilution from Options
- Calculating Proceeds Received at Exit
- Calculating Sponsor Returns
- Checking Returns
- Key Drivers of Returns
- Sensitivity Analysis: Entry Multiple vs. Leverage
- Sensitivity Analysis: Entry Multiple vs. Exit Multiple
- Model Recap
- Introduction to Purchase Price Accounting
- Calculating New Goodwill Creation
- Calculating Adjustment to Equity
- Treatment of Incremental D&A
- Deferred Tax Liability Creation
- Introduction to Dividend Recapitalizations
- Setting the Dividend Recap Parameters
- Calculating the Special Dividend to Sponsor
- Creating a New Debt Tranche for the Dividend Recap
- Impact to Interest Schedule
- Impact to Cash Flow Statement
- Impact to Balance Sheet
- Impact to Returns
- Introduction to Add-On Acquisitions
- Setting Key Assumptions for the Acquisition Build
- Creating the Acquisition Toggle
- Creating the Representative Acquisition Build
- Creating the Acquisition Waterfall – Revenue
- Completing the Acquisition Waterfall
- Creating the Combined P&L Build
- Editing the Income Statement
- Editing the Cash Flow Statement
- Editing the Balance Sheet
- Editing for Pro Forma EBITDA
- Assessing the Impact to Returns
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Get the LBO Modeling Course Certification
After completing the course, all students will be granted the WSO LBO Modeling Course Certification. Use this certificate as a signal to employers that you have the technical LBO modeling skills to immediately add value to your team.
Demonstrate that you have put in the work outside of university courses to make yourself an expert on leveraged buyout models. Easily share to LinkedIn and other social media sites to highlight your skills and strengthen your profile as a candidate.
How Much is Your
Finance Career Worth?
What You Get | Value |
|---|---|
WSO LBO Modeling Course 110+ video lessons across 10 Modules taught by a top-bucket bulge bracket investment banker... | $500 |
1 LBO Case: Nike Gain realistic practice drilling the concepts taught in the course with timed benchmarks so that you can ... | $450 |
24 Months of Unlimited Elite Support from Actual Finance Pros Have a technical question? Easily drop a comment into any lesson and get a response from a pro within 48hrs. | $300 |
TOTAL VALUE | $1,250 |
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