Courses / Leveraged Buyouts (Standard) / Modeling LFCF Projections Upgrade AccountYour current access is limited. To continue watching this lesson, you'll need to purchase a subscription. Sign UpModeling LFCF ProjectionsIn this lesson, we'll project earnings and cash flow for our illustrative LBO of Hamilton Beach Brands.DiscussionRestricted AccessYou need to sign up for a Lumovest subscription in order to join discussions. Sign UpRestricted AccessYou need to sign up for a Lumovest subscription in order to to download lesson materials. Sign UpLeveraged Buyouts (Standard) 1. What is a Leveraged Buyout (LBO)? (3:51) 2. Why Private Equity Firms Use Leverage (4:25) 3. Why the Use of Leverage Boosts Equity Returns (8:17) 4. How Equity Investors Make Money from LBO (2:58) 5. How a LBO Model Works (2:25) 6. Modeling the Entry Valuation (8:40) 7. Financing Fees (2:05) 8. Amortization of Financing Fees (3:29) 9. Modeling the Capital Structure Table (12:29) 10. Modeling LBO Sources & Uses (6:43) 11. Modeling LFCF Projections (7:56) 12. Introduction to Debt Schedule (3:50) 13. Cash Available to Optionally Repay Debt (3:56) 14. Modeling Cash Available to Optionally Repay Debt (4:55) 15. Modeling the Benchmark Rate (2:24) 16. Order Matters in Debt Schedule (1:17) 17. Modeling Revolver in Debt Schedule (10:42) 18. Modeling Term Loan in Debt Schedule (10:34) 19. Modeling Bond in Debt Schedule (2:16) 20. Significance of Positive vs. Negative LFCF (3:06) 21. Net Debt (1:05) 22. Modeling the Capital Structure (5:49) 23. Modeling the Integration of Financials (3:42) 24. Circularity in the Debt Schedule (2:15) 25. Circular Reference Error (5:30) 26. Modeling the Circularity Protection (2:30) 27. Modeling the Returns Profile (3:54) 28. Cost of Capital in LBO (2:21) 29. Drivers of IRR in LBO (4:15) 30. Connecting Dots (2:16)
