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Interested in this as well.
www.macabacus.com
Fairly comprehensive and easy to follow.
Wall Street Prep. Very technical. Very comprehensive. Very easy to follow. Fairly expensive... totally worth the investment though
WSO also has a deal with WSP so you get a better price
I would recommend taking the Macabucs shortform LBO and trying to recreate it in a blank excel file. Don't copy any formulas, rather use the Macabacus model as a reference. And if you are confused, read the Macabacus writeups.
Buy Investment Banking by Rosenbaum & Pearl
Breaking Into Wall Street is def the best ive seen.
BIWS teaches it better b/c it is a webinar, but I still like Rosenbaum and Pearl's model b/c it is akin to a BB LBO.
BIWS teaches it better b/c it is a webinar, but I still like Rosenbaum and Pearl's model b/c it is akin to a BB LBO.
Thanks everyone.
LBO Model resources (Originally Posted: 01/30/2010)
Does anyone know a good book or program that teaches LBO modeling / other types of modeling that PE firms look for? Currently working in banking but not getting the experience I need to get into PE.
http://rapidshare.com/files/343593841/Valuation_for_Mergers_Buyouts_and…
While it lasts.
Could you please re-post it again? (the rapidshare link)
Google macabacus lbo...You can read the commentary and dl an LBO model from there
LBO model prep (Originally Posted: 12/26/2012)
What finance concepts should I brush up on before learning how to do the lbo model?
I'd start with time value of money
Lol ... I was going to say times tables but that may be going a little too far back
If you're talking about building a model from a technical/structural perspective, then time value of money isn't very useful; you only use it to calculate IRR. Of course to actually understand the LBO model, time value is very, very important, but in terms of the model in excel itself, it's not what I'd start with.
If you don't know accounting (at some basic level), then start with that. You're going to get very confused very quickly if you don't understand why you're driving toward some metric and not some other one.
Other than that... basic excel skills? Building a one statement LBO model isn't terribly difficult, so just go out and find a guide and build one from scratch, using someone else's model as a template/guide. Best to open up two excels so you can see how your model is progressing versus the 'guide' version.
Also, OP, you call it "the" LBO model... there's not just one single way of modelling and LBO. It can be as complex or as simple as you like. There can be a full three statement model, with multiple schedules spanning dozens of sheets, or you can keep it all on one sheet and just use the most relevant metrics to do a quick back of the envelope LBO. In a lot of cases, you'll see that the simple model isn't that far off from what ought to arguably be the more "correct" model.
That's a helpful explanation..
Yeah, the firm I interned for this semester had a few different types of LBO models - one which had a 30-page summary tab with like 20 other tabs and some other smaller ones, one of which was only like 3 tabs. I understand basic accounting and tvm. I don't understand IRR that well, the different debt seniority levels (--if I even said that right) and probably a few other things like "calendarization of financials", etc, etc.... Yeah, maybe I should just give it a shot....
I guess the reason I made this is post is because when I look at that ~200-tab (w/ a ~30-page summary tab) LBO model I referred to above, there is so much complexity that I feel like it'll take me two years in banking to understand it.....But maybe I'm over-complicating it and I'll actually be able to understand it all in a week or two.
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