All subjects

Private Equity

Borrowing reduces entry equity. Remaining debt reduces what shareholders receive at exit.

Your starting point

Corporate Finance and Dealmaking

How much does debt magnify the investor’s outcome? A simple LBO bridge moves from entry EV to sponsor equity, then from exit EV to equity proceeds. Model cash flow and debt paydown separately to avoid attributing all gains to multiple expansion.

Model a leveraged buyoutFoundation · Quick, Deep, ApplyModel debt paydown and exit equityAdvanced · Quick, Deep, ApplyPrerequisite · Build a DCF

Use the linked prerequisite and related topics to build your path.