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LBO & sponsor returns

Model acquisition funding, annual debt paydown and sponsor proceeds from the operating model.

Available modeling methods

Method / inputBehavior
Entry and Sources & UsesEV, equity purchase price or entry multiple; fees, refinancing, rollover and other sources/uses.
Debt tranchesAmount or leverage sizing, cash rate, PIK, amortization, maturity, priority and sweep participation.
Exit and returnsIndependent exit year/metric/multiple, bridge claims, fees, ownership, distributions, IRR and MOIC.

Reconcile the acquisition

Sponsor equity balances Sources & Uses and must be positive. The selected bridge year determines entry cash and debt unless overridden. Existing-debt refinancing cannot exceed existing debt; retained debt remains explicit. The minimum-cash assumption can require an entry cash top-up.

Read the annual waterfall

Cash interest uses annual opening balances; PIK capitalizes annually. Mandatory amortization and maturities precede priority-based sweeps of excess cash above minimum cash. Interim distributions reduce cash. If these obligations create an unfunded shortfall, IRR and MOIC are unavailable rather than showing a funded investment.

Returns are not intrinsic value

Operating results can use reported or selected adjusted groups. The LBO is a downstream sponsor-return analysis, not an automatic rewrite of statement debt. Its annual tax shield is simplified; intrayear covenants and Reverse LBO are not implemented. The summary may show entry valuation as a single assumption, not a solved valuation range.

Open in the full valuation model ↗

Documents the current implemented behavior. Example assumptions are not market data.