Target IRR LBO Template
Hi, would anyone be so kind to share an LBO model template using the target IRR method? So a version that is setup in such a way to find the initial price a sponsor could pay given required IRR / MOIC. Thank you in advance
Pretty unique ask. Would recommend taking a free WSO LBO template and building it to have that functionality. Most models are not driven off of a target return as the input
I am not very well versed in LBO modelling so would want to see how it's done first
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Couldn't you just use the Goal Seek function?
Sorry for the dumb question but would you be able to write a quick walkthrough for how to implement that within the model so that it outputs the required initial price?
Essentially, I have a full LBO model that is built using an EBITDA entry and exit multiple but need to rebuild it so that it outputs the initial valuation given target IRR / MOIC. I am doing something wrong as the sponsor equity in the sources and uses schedule doesn't match the required initial investment based on Exit Year Sponsor Equity / MOIC. I.e. required sponsor equity in sources and uses is 315M while Exit Year Sponsor Equity / MOIC = 307.
Look for Ability to Pay analysis templates.
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