What You'll Learn
- Model LBO capital structures (senior debt, mezzanine, and equity checks).
- Calculate and approximate IRR and Multiple on Invested Capital (MOIC).
- Evaluate commercial due diligence findings (EBITDA adjustments, customer retention cohorts).
Lesson Overview
Master Leveraged Buyout (LBO) capital structures, debt capacity modeling, IRR/MOIC returns, commercial due diligence, and operational EBITDA expansion levers.
Imagine your interviewer says: "Your client is VanguardPartners, a mid-market private equity fund. They want to acquire cybersecurity SaaS company SecureNet at a 12x EV/ARR multiple. They plan to use 60% debt to finance the deal. They need to evaluate if SecureNet's cash flows can support this debt and if the investment can hit their 20% IRR target."
Why This Matters for Consulting Interviews
PE cases test your advanced business intuition. You must look at a company through an investor's eyes, weighing financial leverage against real operational risks and exit options.
Prerequisites
- Mergers & Acquisitions
- Pricing Framework
Start This Lesson on PrepPartnr
← Back to preppartnr —
Start practicing with AI →