Debt Modelling (with LBO)


Cost for BPP PD Members: £586 + VAT 6 CPD Hours
(£720.00 + VAT for non BPP PD Members Click Here for details of our membership scheme).


A one-day course for finance professionals who need to create, analyse and interpret simple debt cash flow models. The course is set in the context of an LBO transaction, but is relevant to any form of debt modelling. Delegates without a good understanding of basic excel functionality should first attend the one-day Financial Modelling - Introduction. Laptops (excel v.2013) are provided. Courses are limited to a maximum of twelve delegates, allowing each attendee to experience outstanding tutor support throughout the day.

Course content

During this one-day course delegates will construct a debt cash flow model in the context of an LBO transaction. The inputs to the model will be the operating cash flows of a business alongside some typical LBO debt constraints, and via the modelling of the debt cash flows, the Internal Rate of Return (IRR) of the transaction will be determined (and subject to a sensitivity analysis). Best practice financial modelling will be applied throughout.

Topics covered on this course will include

  • Key features of an LBO transaction
    • Length of investment
    • Exit routes – Initial Public Offering (IPO), trade sale, secondary buyout, liquidation
    • Cash generation and profitability growth of business being acquired
    • Source, length and credibility of forecasts
    • Finance mix
  • Creating the operating model
    • Sales, EBITDA and working capital
    • Capex and depreciation
  • Sources and uses of funds
    • Uses of funds
      • Equity acquisition
      • Refinanced debt
      • Fees
    • Sources
      • Debt capacity constraints
      • Senior tranches
      • Mezzanine
  • Building the debt schedules
    • Circularity issues
    • Capital repayment options
    • PIK interest
    • Revolver
    • Cash sweep
    • Debt waterfall
  • Tax
    • Tax treatment of interest
    • Carry forward of tax losses
  • Equity return
    • IRR
    • Cash/money multiple
  • Sensitivity analysis

"A CPD certificate of completion will be provided by BPP Professional Education Limited upon request, following attendance."

Course Dates

Location Dates Time Availability  
London 18 Mar 2019 9:00 AM - 5:00 PM  Spaces Book Now
London 10 May 2019 9:00 AM - 5:00 PM  Spaces Book Now
London 29 Jul 2019 9:00 AM - 5:00 PM  Spaces Book Now
London 24 Sep 2019 9:00 AM - 5:00 PM  Spaces Book Now
London 28 Nov 2019 9:00 AM - 5:00 PM  Spaces Book Now

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