LBO Modeling Pt.1 – Sources & Uses

Build a strong foundation in leveraged buyout (LBO) modeling by understanding how transactions are structured, valued, and financed.

Understand how private equity firms structure LBO transactions and use leverage to enhance returns
Learn how enterprise value is determined using normalized EBITDA and valuation multiples
Analyze sources and uses to understand how LBO transactions are funded

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Corporate Finance Institute

LBO Modeling Pt.1 – Sources & Uses

Overview

LBO Modeling Pt.1 – Sources & Uses Course Overview

A leveraged buyout (LBO) model is one of the most widely used tools in investment banking and private equity. In this first course of the LBO modeling series, you’ll develop a strong foundation in how LBO transactions are structured and financed. You’ll learn how to construct sources and uses of funds, determine purchase price using enterprise value and EBITDA multiples, and analyze financing assumptions across different types of capital. The course also introduces key valuation concepts and the capital structure used in LBO transactions. By the end, you’ll have the foundational knowledge needed to progress toward building a complete LBO model.

Who Should Take this LBO Modeling Pt.1 – Sources 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.1 - Sources & Uses Learning Objectives

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

Explain the key characteristics of leveraged buyout (LBO) transactions, including the role of leverage and typical participants
Interpret how enterprise value is determined in an LBO using normalized EBITDA and valuation multiples
Analyze the components of a sources and uses schedule and how transactions are funded through different capital sources
Differentiate between the various layers of capital in an LBO structure, including their cost, risk, and priority in the capital stack

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.1 – Sources & Uses

LBO Modeling Pt.1 – Sources & Uses Course Overview

Who Should Take this LBO Modeling Pt.1 – Sources Course?

LBO Modeling Pt.1 - Sources & Uses Learning Objectives

What You'll Learn

Introduction

LBO Overview

LBO Valuation

LBO Model Design

Sources & Uses

Financing Assumptions

Model Drivers

Course Summary

Qualified Assessment

This Course is Part of the Following Programs

Investment Banking & Private Equity Modeling Specialization

Frequently Asked Questions