Bridgesheet

LBO model

Pro

Full LBO: four debt tranches (senior A and B, mezzanine, PIK), cash sweep, management equity and exit. It calculates sponsor and management IRR and MOIC, with credit statistics and a value bridge.

Download the example file (.xlsx)
  • 6 sheets
  • 2 IRR grids (5 × 5), 25 scenarios
  • 4 checks and 2 alerts
  • Input
  • Calculation

01 — General

Step 1 of 5

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Summary, charts and sensitivities, ready to drop into a presentation.

File language

Independent of the interface: for instance, generate a French or German model for a client abroad.

Model currencyEUReditable in the General step

Free plan: files carry a “Free version” notice.

Method

Uses = entry EV + fees + minimum cash, funded at entry. Four tranches, each a multiple of entry EBITDA; zero leverage switches one off. Equity = uses − debt. Management funds the % entered, the sponsor the rest.

Interest applies to opening balances. Senior A, senior B and mezzanine pay cash interest; PIK interest is capitalised. Tax applies to positive pre-tax profit after cash and PIK interest, with no tax losses carried forward. Free cash flow = EBITDA − capex − working capital increase − tax − cash interest.

Senior A amortises straight-line (initial amount / period). Cash above the minimum × the sweep % prepays senior A first, then senior B. Mezzanine and PIK stay outstanding until exit. There is no revolver: cash below the minimum triggers an alert.

Exit equity = final-year EBITDA × exit multiple − net debt. Management receives the ownership % entered, the sponsor the balance; a share above the share invested models sweet equity. IRR = MOIC^(1/years) − 1, with no interim cash flows.

The bridge (EBITDA growth, multiple expansion, deleveraging, fees) reconciles with the total gain. Multiples grid: direct formula. Leverage × growth grid: 25 full trajectories, tranches scaled, and the shift added to each year's growth.

What's in the file

  1. 01CoverCompany, date, currency, checks status, contents, colour conventions and disclaimer.
  2. 02InputsOperations, transaction, four debt tranches, management share, exit multiple and sensitivity steps.
  3. 03LBOSources and uses, operations, interest and tax, tranche schedule with sweep, credit statistics, returns and value bridge.
  4. 04Scenarios25 full trajectories (total leverage × growth shift) feeding the IRR grid; no Excel data table.
  5. 05OutputsSponsor and management MOIC and IRR, IRR grid by multiples, and IRR grid by leverage and growth.
  6. 06ChecksFour checks (incl. sponsor + management = exit equity) and two alerts (minimum cash, exit equity).