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
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