All Industries, Financial Model, General Excel Financial Models

Cash-on-Cash Multiple, Financial Analysis, Financial Model, Financial Modeling, LBO (Levered Buyout), Private Equity

This template serves as a supplement to any LBO model and is a great way to audit your model and highlight the factors impacting the projected Multiple of Invested Capital (MOIC). Simply add these two tabs to your LBO model and link the highlighted cells to your existing model. The “output” is a Value Bridge that shows the drivers behind the projected MOIC that can be referenced for model auditing and added to an investment presentation.

The MOIC drivers are:

Deleveraging
Multiple arbitrage
Revenue growth / decline
Gross margin % expansion / compression
Operating leverage

Quantifying the drivers of the projected returns is the first step in understanding and selling the project to investors. This is a powerful way to communicate how the project will deliver the estimated returns.

Other features:

The graph will automatically adjust to account for positive and negative impacts to MOIC
The model is cleanly formatted and easy to understand. All inputs are clearly marked (highlighted cells) on an inputs tab.
The model is unlocked to allow for auditing and modifications

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