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.
LBO Modeling Pt.1 - Sources & Uses
Led by
Duncan McKeen
Led by
Jeff Schmidt
Level 4
2h 30min
100% online and self-paced
Start LearningWhat You'll Learn
Lesson
Multimedia
Exams
Files
LBO Model Design
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
What Our Members Say
Understanding the Financial Structure Behind a Leveraged Buyout
This course provided a practical understanding of how the financial structure of an acquisition is established through a Sources & Uses schedule. I particularly appreciate how it connects the purchase consideration and transaction-related costs with the different sources of funding required to complete a deal. One important takeaway is that an acquisition must be evaluated not only by its purchase price but also by how it is financed and the amount of capital each party contributes. Understanding this relationship is essential when assessing transaction feasibility, financing decisions, and the potential returns to equity investors. It is a valuable building block for developing a complete LBO model. Paul Chukwudi Udeh
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