LBO Modeling Best Practice

Hi all, 

As I am practicing LBO modeling I wanted to discuss with you any best practices to avoid practicing wrong / not optimal stuff. 

If I start an LBO from scratch in a modeling test, I would go along the following way

1) Setting up the Business Plan (Historicals + forecasts)

2) Transaction assumptions + sources and uses

3) Free Cash flow calculation

4) Debt Schedule

5) Exit calculation / return calc 

6) Sensitivities 


Would you agree with this and can you share any tipps or best practices during for LBO modeling? 

Many thanks! 

 

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