LBO Simulator
Model leveraged buyout structures - debt, equity, seller notes, and cash flow coverage analysis.
Deal Parameters
Capital Structure
Equity required:45.0% ($2,250,000)
Debt Terms
Operating Assumptions
Equity Invested
$2,250,000
Total Return
$9,160,623
Exit equity + cumulative cash flows
MOIC
4.07x
IRR
38.0%
Sources & Uses
Sources
| Senior Debt | $2,000,000 | 40.0% |
| Seller Note | $750,000 | 15.0% |
| Equity | $2,250,000 | 45.0% |
| Total | $5,000,000 | 100% |
Uses
| Acquisition of Business | $5,000,000 |
| Entry multiple: 5.00x EV/EBITDA |
Cash Flow Projection
| Year | EBITDA | Senior Debt Service | Seller Note Service | CapEx | WC Change | FCFE | Cumulative |
|---|---|---|---|---|---|---|---|
| 1 | $1,050,000 | ($358,270) | ($168,470) | ($157,500) | ($25,000) | $340,760 | $340,760 |
| 2 | $1,102,500 | ($358,270) | ($168,470) | ($165,375) | ($26,250) | $384,135 | $724,894 |
| 3 | $1,157,625 | ($358,270) | ($168,470) | ($173,644) | ($27,563) | $429,678 | $1,154,573 |
| 4 | $1,215,506 | ($358,270) | ($168,470) | ($182,326) | ($28,941) | $477,499 | $1,632,072 |
| 5 | $1,276,282 | ($358,270) | ($168,470) | ($191,442) | ($30,388) | $527,711 | $2,159,783 |
Exit Analysis (Year 5)
| Exit EBITDA (Year 5) | $1,276,282 |
| Exit EV (6.00x multiple) | $7,657,689 |
| Less: Remaining Senior Debt | ($656,850) |
| Less: Remaining Seller Note | ($0) |
| Equity Value at Exit | $7,000,840 |
Debt Paydown Schedule
| Year | Senior Balance | Seller Balance | Total Debt |
|---|---|---|---|
| 0 | $2,000,000 | $750,000 | $2,750,000 |
| 1 | $1,761,730 | $611,530 | $2,373,260 |
| 2 | $1,509,164 | $467,521 | $1,976,684 |
| 3 | $1,241,444 | $317,751 | $1,559,195 |
| 4 | $957,660 | $161,991 | $1,119,651 |
| 5 | $656,850 | $0 | $656,850 |