Learning LBOs

To go from vague LBO knowledge to confidently building one from scratch in under 90 minutes, here's a structured approach based on the most helpful WSO content:

1. Master the Fundamentals:

   • Start with understanding the theory behind LBOs, including leverage, returns, and the sources and uses of cash in an acquisition. The WSO courses provide a module with 14 video lessons covering these basics.

2. Learn Key Components:

   • Focus on P&L projections, LBO-specific adjustments, and building a debt schedule. The WSO Elite Modeling Package includes detailed lessons on these topics, such as calculating cash flow available for debt service, revolver schedules, and credit metrics.

3. Practice Building Models:

   • Use the WSO Free Modeling Series, which offers 9 free lessons taught by experienced private equity professionals and investment bankers. These lessons cover financial statement modeling, DCF, M&A, LBO, and more, along with 27 financial modeling templates to practice with.

4. Step-by-Step Guidance:

   • Follow a step-by-step guide to building an operating model, as this is a critical foundation for LBO modeling. Resources like Macabacus or Multiple Expansion provide excellent tutorials for standalone models.

5. Simulate Real-World Scenarios:

   • Practice paper LBOs for interviews, as they are a great way to test your speed and understanding. WSO forums often discuss strategies for tackling these efficiently.

6. Recommended Resources:

   • While specific YouTube channels aren't mentioned in the WSO content, platforms like Breaking Into Wall Street (BIWS) and Wall Street Prep are highly regarded for video tutorials on LBO modeling.

By dedicating time to these resources and practicing consistently, you'll be well-prepared to build an LBO model from scratch within your desired timeframe.

Sources: Top Financial Modeling Courses - List of Top Financial Analyst Courses, LBO modeling for software companies, Paper LBO Model for SA interviews?, 7 Practical Buyside Recruiting Tips for IBD Analysts