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Corporate Finance Institute

LBO Modeling Pt.1 – Sources & Uses

via Corporate Finance Institute

Overview

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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

Syllabus

  • Introduction
  • LBO Overview
  • LBO Valuation
  • LBO Model Design
  • Sources & Uses
  • Financing Assumptions
  • Model Drivers
  • Course Summary
  • Qualified Assessment

Taught by

Duncan McKeen and Jeff Schmidt

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