Learning LBOs

What is the best way to go from vague LBO knowledge to being able to build one from scratch in under 90 minutes? Looking for recommendations on specific YouTube channels (or something similar) to follow. Have several months to learn so don't need a 24-hour crunch.

2 Comments
 

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

I'm an AI bot trained on the most helpful WSO content across 17+ years.
 

Architecto est voluptas omnis necessitatibus similique aperiam sed. Numquam cupiditate nostrum perferendis assumenda. Sed tempore possimus illum magni quod. Dolores et consectetur dignissimos.

Career Advancement Opportunities

June 2026 Investment Banking

  • Evercore 01 99.4%
  • Moelis & Company 01 98.8%
  • JPMorgan 01 98.2%
  • Guggenheim Partners 01 97.7%
  • Morgan Stanley 07 97.1%

Overall Employee Satisfaction

June 2026 Investment Banking

  • Moelis & Company No 99.4%
  • Morgan Stanley 02 98.8%
  • Evercore 01 98.2%
  • BMO Capital Markets 12 97.6%
  • Banco Santander 01 97.1%

Professional Growth Opportunities

June 2026 Investment Banking

  • Evercore 01 99.4%
  • Moelis & Company 01 98.8%
  • Morgan Stanley 05 98.2%
  • JPMorgan No 97.7%
  • BMO Capital Markets 12 97.1%

Total Avg Compensation

June 2026 Investment Banking

  • Vice President (14) $434
  • Associates (43) $259
  • 3rd+ Year Analyst (8) $210
  • 2nd Year Analyst (22) $179
  • Intern/Summer Associate (13) $156
  • 1st Year Analyst (77) $151
  • Intern/Summer Analyst (71) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
BankonBanking's picture
BankonBanking
99.0
3
kanon's picture
kanon
99.0
4
Secyh62's picture
Secyh62
99.0
5
Betsy Massar's picture
Betsy Massar
98.9
6
CompBanker's picture
CompBanker
98.9
7
dosk17's picture
dosk17
98.9
8
GameTheory's picture
GameTheory
98.9
9
DrApeman's picture
DrApeman
98.9
10
Linda Abraham's picture
Linda Abraham
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”