Financial Modeling In Private Equity

What is Financial Modeling In Private Equity?

In private equity, financial modeling typically consists of building leveraged buyout (LBO) models to evaluate the return profile of acquiring a business. The main metrics that are used in a private equity financial model include the internal rate of return (IRR), cash on cash return, net present value (NPV), debt/EBITDA ratio, debt/equity ratio, and other rates or return or leverage.

Example Excel Model

Below is a screenshot from one of CFI’s online analyst training and certification courses.  To how how to build an excel model step-by-step, click on the image below.

financial modeling questions

Additional Questions and Answers

CFI is a the official global provider of financial modeling and valuation analyst FMVA Designation. CFI's mission is to help anyone become a world-class financial analyst and has a wide range of resources to help you along the way. In order to become a great financial analyst, below are some additional questions and answers for you to explore further:

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