How to Build A Capitalization Table
Hey everyone! I have case study for a full-time private credit interview with a firm in Cali next week.
I have to build an LBO model -- and a Capitalization Table. I know what an LBO model is and can build a simple one. But I've never built a Capitalization Table and am freaking out!!!
I understand that this is a stupid question, but I'd rather receive resources/direction than be completely lost in the sauce like I am now. The only resources I've seen online are for VC cap tables, but not like a debt cap table.
I vaguely remember seeing a debt cap table that a different team built during my summer internship last summer (LevFin built this - my team didn't). I welcome the criticism for not knowing (studying English Literature in college and am still learning finance) but any help would also be a life saver!!!
Thank you for any tips!
Quick overview:
3 columns
left hand side should be for titles
next column is $ amounts
next column is xEBITDA multiples
rows should be the following, with the titles listed in column 1 and amounts listed in column 2:
-Cash and cash equivalents
-individual secured debt line items (term loans, secured notes, etc.)
-total secured debt
-net secured debt
-individual unsecured debt line items (typically unsecured bonds)
-total debt
-net debt
-ebitda (and in the column next to the secured/net/total/net amounts, show the gross/net multiples)
shade the cash + line item rows white, the total/net rows in light grey and the ebitda in a blue for some quick formatting and add some borders to clean it up (no side borders)
Only thing I would add is that if there is second lien debt you should break out first lien leverage from secured leverage
Thank you very much! Huge help!
Autem unde veritatis et itaque voluptatem aut enim impedit. Ipsum necessitatibus sequi corrupti.
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