john
Oil & Gas LBO Modeling
Copyright 2008 © by Wall Street Prep, Inc.
,john
Terms of Use
The tutorial and enclosed models are proprietary to Wall Street Prep and are designed
for illustrative and training purposes only. Distributing, sharing, copying, duplicating or
altering these models in any way is prohibited without the expressed, written permission
of Wall Street Prep, Inc. The Self Study Program is designed for illustrative purposes only
and does not, in any way, constitute any investment thesis or recommendation.
Copyright
2008 Wall Street Prep, Inc. All rights reserved. "Wall Street Prep", "Wall Street Prep", and
various marks are trademarks of Wall Street Prep, Inc.
,john
Table of contents
SECTION 1: PREPARING FOR MODELING SECTION 3: ADJUSTING MODEL FOR
Introduction LBO/RECAP ANALYSIS
Modeling techniques in Excel Exit LBO assumptions
LBO sources and uses
SECTION 2: BUILDING A FINANCIAL Purchase price allocation & goodwill
STATEMENT MODEL LBO returns analysis
Control & assumptions Pro forma balance sheet adjustments
Income statement Balancing the model
Balance sheet Shares outstanding
Cash flow statement Sensitivity analysis
LBO debt schedule, interest expense & circularity
Intangible assets
PP&E
, john Introduction
Overview
• A leveraged buyout (LBO) is a specific type of
acquisition transaction, where most of the
purchase price is funded with debt, and the
company is “taken private”.
• The remaining portion is funded with equity by the
financial sponsors, or private equity investors.
• Under a leveraged buyout, a company that
undergoes a recapitalization to a highly leveraged
financial structure becomes a new company –
from oldco to newco.
For Illustrative Purposes Only 4
Oil & Gas LBO Modeling
Copyright 2008 © by Wall Street Prep, Inc.
,john
Terms of Use
The tutorial and enclosed models are proprietary to Wall Street Prep and are designed
for illustrative and training purposes only. Distributing, sharing, copying, duplicating or
altering these models in any way is prohibited without the expressed, written permission
of Wall Street Prep, Inc. The Self Study Program is designed for illustrative purposes only
and does not, in any way, constitute any investment thesis or recommendation.
Copyright
2008 Wall Street Prep, Inc. All rights reserved. "Wall Street Prep", "Wall Street Prep", and
various marks are trademarks of Wall Street Prep, Inc.
,john
Table of contents
SECTION 1: PREPARING FOR MODELING SECTION 3: ADJUSTING MODEL FOR
Introduction LBO/RECAP ANALYSIS
Modeling techniques in Excel Exit LBO assumptions
LBO sources and uses
SECTION 2: BUILDING A FINANCIAL Purchase price allocation & goodwill
STATEMENT MODEL LBO returns analysis
Control & assumptions Pro forma balance sheet adjustments
Income statement Balancing the model
Balance sheet Shares outstanding
Cash flow statement Sensitivity analysis
LBO debt schedule, interest expense & circularity
Intangible assets
PP&E
, john Introduction
Overview
• A leveraged buyout (LBO) is a specific type of
acquisition transaction, where most of the
purchase price is funded with debt, and the
company is “taken private”.
• The remaining portion is funded with equity by the
financial sponsors, or private equity investors.
• Under a leveraged buyout, a company that
undergoes a recapitalization to a highly leveraged
financial structure becomes a new company –
from oldco to newco.
For Illustrative Purposes Only 4
