Leveraged Buyout (LBO) Model Template

Build PE LBO models using various inputs and schedules

Author: Christopher Haynes
Christopher Haynes
Christopher Haynes
Asset Management | Investment Banking

Chris currently works as an investment associate with Ascension Ventures, a strategic healthcare venture fund that invests on behalf of thirteen of the nation's leading health systems with $88 billion in combined operating revenue. Previously, Chris served as an investment analyst with New Holland Capital, a hedge fund-of-funds asset management firm with $20 billion under management, and as an investment banking analyst in SunTrust Robinson Humphrey's Financial Sponsor Group.

Chris graduated Magna Cum Laude from the University of Florida with a Bachelor of Arts in Economics and earned a Master of Finance (MSF) from the Olin School of Business at Washington University in St. Louis.

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Reviewed By: Patrick Curtis
Patrick Curtis
Patrick Curtis
Private Equity | Investment Banking

Prior to becoming our CEO & Founder at Wall Street Oasis, Patrick spent three years as a Private Equity Associate for Tailwind Capital in New York and two years as an Investment Banking Analyst at Rothschild.

Patrick has an MBA in Entrepreneurial Management from The Wharton School and a BA in Economics from Williams College.

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Last Updated:May 7, 2023

Download WSO's free Leveraged Buyout (LBO) model template below!

This template allows you to build your own private equity LBO model using various financing/debt inputs and schedules.

The template is plug-and-play, and you can enter your own numbers or formulas to auto-populate output numbers. The template also includes other tabs for other elements of a financial model.

According to the WSO Dictionary,

LBO stands for Leveraged Buyout and refers to the purchase of a company while using mainly debt to finance the transaction. Leveraged Buyouts are usually done by private equity firms and rose to prominence in the 1980s.

 

The company performing the LBO or takeover only has to provide a portion of the financing yet is able to make a large purchase through the use of debt, hence the name 'Leveraged'. During the 1980s - 1990s when LBOs were hot, debt could make up as much as 90% of the purchase of a business. However, now investors and private equity firms are a bit more risk-averse and therefore may use closer to 50% debt and 50% equity to purchase a business."

A screenshot below gives you a sneak peek of the template.

Leveraged Buyout (LBO) Model Template

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Leveraged Buyout (LBO) Model Template.xlsx 131.08 KB 131.08 KB