Merger & LBO Model Valuation Excel
In the context of a Leveraged buyout this 6 step LBO excel model will enable you to know if the deal should be accepted by equity investors and all investors by computing the present value of cash flows.
STEP 1: Estimate the total cost of the deal
STEP 2: Define how the deal will be financed
STEP 3: Define rates of future growth
STEP 4: GENERAL INFORMATION
STEP 5: SPECIFY ASSETS TO BE SOLD (Enter the year in which assets will be sold and market value and CF to the firm from those assets)
STEP 6: ENTER INFORMATION ON CURRENT INCOME STATEMENT
- Prof. Aswath Damodaran
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STEP 1: Estimate the total cost of the deal
STEP 2: Define how the deal will be financed
STEP 3: Define rates of future growth
STEP 4: GENERAL INFORMATION
STEP 5: SPECIFY ASSETS TO BE SOLD (Enter the year in which assets will be sold and market value and CF to the firm from those assets)
STEP 6: ENTER INFORMATION ON CURRENT INCOME STATEMENT
- Prof. Aswath Damodaran
Side note: If you have appreciated this model, feel free to give it a rating/review!