LBO Modeling Pt.2 – Capital Structure

Advance your leveraged buyout (LBO) modeling skills by understanding how to build complex capital structures into a model.

Construct detailed schedules for the revolving credit line, term loans, subordinated debt and equity.
Understand how to model both the drawn and undrawn portions of a revolving credit line.
Learn how to structure excess cash sweep mechanisms through the capital stack properly.

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Corporate Finance Institute

LBO Modeling Pt.2 – Capital Structure

Overview

LBO Modeling Pt.2 – Capital Structure Course Overview

A leveraged buyout (LBO) model is one of the most widely used tools in investment banking and private equity. In this second course of the LBO modeling series, you’ll build a complex capital structure into the model, including the drawn and undrawn portions of a revolving credit line, term loans, subordinated debt, and equity. The course also introduces discretionary cash sweep mechanisms for the term loans and subordinated debt. By the end, you’ll have advanced knowledge of capital structure modeling that is used in LBO transactions.

Who Should Take this LBO Modeling Pt.2 – Capital Structure Course?

This course is designed for aspiring investment banking and private equity professionals, as well as anyone looking to build practical financial modeling skills. It is especially relevant for those pursuing careers in corporate finance, transaction advisory, or capital markets.

LBO Modeling Pt.2 - Capital Structure Learning Objectives

By the end of this course, learners will be able to:

Construct detailed debt and equity schedules and apply cash sweep mechanisms using excess cash flow.
Analyze the risk, return, and priority of each layer within the capital stack.
Evaluate the impact of capital structure decisions on equity returns in an LBO model.

Prerequisite Courses

Recommended courses to complete before taking this course.

What You'll Learn

Lesson

Multimedia

Exams

Files

Course Summary

Qualified Assessment

This Course is Part of the Following Programs

Why stop here? Expand your skills and show your expertise with the professional certifications, specializations, and CPE credits you’re already on your way to earning.

Investment Banking & Private Equity Modeling Specialization

Skills You’ll Gain Accounting, Advanced Financial Modeling, Excel, Financial Statement Analysis, Forecasting, Valuation, and more.
Great For Investment Banking, Private Equity, Equity Research, and more

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LBO Modeling Pt.2 – Capital Structure

LBO Modeling Pt.2 – Capital Structure Course Overview

Who Should Take this LBO Modeling Pt.2 – Capital Structure Course?

LBO Modeling Pt.2 - Capital Structure Learning Objectives

What You'll Learn

Introduction

Operational Schedules

Capital Structure

Debt Schedule: Revolver

Debt Schedule: Term Loans

Debt Schedule: Subordinated

Model Circularity

Course Summary

Qualified Assessment

This Course is Part of the Following Programs

Investment Banking & Private Equity Modeling Specialization

Frequently Asked Questions