How to Build a PAPER LBO Model in 3 Steps! (FREE Excel Included)

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  • Опубліковано 1 січ 2025

КОМЕНТАРІ • 69

  • @rareliquid
    @rareliquid  Рік тому +2

    Links to all of the things I mentioned in the video below!
    🧑‍🏫Wharton / Wall Street Prep PE Certificate Program🧑‍🏫
    ► Learn from real investors (including the founder of Carlyle) about the private equity industry
    ► Use code RARELIQUID for up to $500 OFF for ANY cohort
    ► tinyurl.com/5n8kr4tz
    ⬇Download the Excel for FREE⬇
    ► Paper LBO: www.wallstreetprep.com/lc-rl-paperlbo-template/
    🍎Sign up for my courses🍎
    ► How to get into MBA programs: forms.gle/9yEyycuP7NnQBjue8
    ► How to get into investment banking: forms.gle/wt4cZrezbxVgNzGUA
    ▶Playlists▶
    ► Modeling and Finance Tutorials: ua-cam.com/play/PL71QplJWp1RoaKEMTo_9CZA-kyjwT5rGo.html
    ► Private Equity Videos: ua-cam.com/play/PL71QplJWp1Rrm0dkWjjIY2cf4jTYSU0t2.html

  • @PCDisciple
    @PCDisciple 11 місяців тому +2

    Such an underrated video. This is an incredible resource, hope you’re having a good time in Philly!

  • @aishwaryapotdar1348
    @aishwaryapotdar1348 Рік тому +25

    Please do one for M&A as well. An accretion dilution or anything that you think is relevant! Thanks a lot for all of your videos.

    • @rareliquid
      @rareliquid  Рік тому +8

      this has been requested quite a bit so will do this later on!

  • @shanel.478
    @shanel.478 Рік тому +3

    Appreciate the IRR table, def very helpful

  • @taylorparrish4323
    @taylorparrish4323 10 місяців тому

    Great content. Would love to see more advanced / in-depth modelling videos. I have a finance degree and went into consulting after school. While there I taught myself to code and work as a data engineer these days. I've recenlty had a renewed interested in finance and have gone through some of your modelling videos to refresh.

  • @aaronhornanfinance-bu8ft
    @aaronhornanfinance-bu8ft Місяць тому

    Thank you bro

  • @lars-andre
    @lars-andre Рік тому +4

    Thanks for the video, always appreciated! Any way you could do a capitalization table?

  • @maximilianmunster8756
    @maximilianmunster8756 Рік тому +4

    Can you make a live stream where you Build a big LBO for a firm like your videos with the DCFs for apple and co

  • @jasonfrancis0997
    @jasonfrancis0997 Рік тому +1

    I really love watching your modeling videos. I was wondering if you can do a DCF valuation tutorial for a bank. I'd really appreciate it, thanks

  • @gadripericles3034
    @gadripericles3034 4 місяці тому +3

    @Rareliquid did you remove the excel file for the paper LBO?

  • @fernandogonzalezhenr
    @fernandogonzalezhenr Рік тому +2

    Would be nice a M&A transaction model of a company using leverage to buy another, and all the implications

  • @darrelldas1962
    @darrelldas1962 Рік тому +5

    Literally missed these modelling videos. 😭. Precedent valuation can you make?

  • @zoetuan8326
    @zoetuan8326 Рік тому

    Thank you so much for all the great videos!! they helped a ton XD

  • @thesnackbandit
    @thesnackbandit Рік тому

    Great video. Super high quality content, hardly a wasted moment. Keep up the great work.

  • @markgarcia3239
    @markgarcia3239 4 місяці тому

    Seen a couple of your videos but can you explain how come you use CapEx through the entire life of the model? How would you handle a situation where CapEx is needed say in Year 0 or Year 1 and no additional CapEx is required?

  • @1989Murmel
    @1989Murmel Рік тому

    Nice, would be nice with a video on reverse DCF also

  • @christianandreaprile8477
    @christianandreaprile8477 11 місяців тому

    could you make a video where you analyze financial statement results please? for exemple j.pm Morgan last quarterly?... something like ''how to read financial statements''. it will be very helpful. thank you for your job

  • @str5148
    @str5148 10 місяців тому +1

    Sir i havea doubt,
    Exit equity value = Ent Value + Net debt - Cash
    So it will be 916
    And MOIC will be 6.1x

    • @joshturanich6646
      @joshturanich6646 10 місяців тому

      You will have to subtract the debt from your final cash flow generated because you have to pay the debt back to the lender after the 5 years. That is why it is negative rather than positive. Therefore it = exit EV - debt + FCF generated to get to your exit equity.

  • @aishwaryapotdar1348
    @aishwaryapotdar1348 Рік тому +3

    Is it better to round to the nearest 5 or 10, in a paper lbo, for each step?

    • @rareliquid
      @rareliquid  Рік тому +2

      depends on what units you're working with. so if it's below 100, then generally to the nearest 5 but if it's a few hundred+, nearest 10 is prob fine

  • @shuangchen3708
    @shuangchen3708 3 місяці тому +1

    Link for excel has expired

  • @bacool
    @bacool Рік тому

    Know any friends from Wharton who were able to get into a no name LMM PE firm without a banking or PE bankground? Applying this cycle with entrepreneur and sales/marketing operating exp. I will do the Jan Cohort for the WSP course

  • @MariaSimónGrau
    @MariaSimónGrau 6 місяців тому

    Someone has the free excel template? When I click on the link it says that the page is not found... Thanks a lot!

  • @Nss1120
    @Nss1120 Рік тому

    Massive error in that income statement, MD would rail you for mislabeling the margin…

    • @QrankChannel
      @QrankChannel 9 місяців тому

      You mean the Ebitda / ebit margin thing? Indeed MD will go crazy especially its only noticed when shared with the client 😂

  • @haoleotop5638
    @haoleotop5638 Рік тому

    Hey, when will you talk about the real company Cannafarm Ltd that brings profit?

  • @atchayphoemnay4114
    @atchayphoemnay4114 Рік тому

    Wait, do you think cryptocurrency will crash? I dont think so. More and more companies are integrating cryptocurrency into their operations: Amazon, Cannafarm Ltd, Burger King, even Starbucks, dude!

  • @user-hn3uu3gj2g
    @user-hn3uu3gj2g Рік тому

    Sheesh this LBO is bad you go to Wharton to trick people into applying for your “online class” eventually lol

    • @rareliquid
      @rareliquid  Рік тому +9

      lol pls explain why this LBO is "bad." i'm guessing you're assuming that this should be a full-fledged 3-statement LBO with multiple debt tranches, a debt waterfall, multiple scenarios for operating assumptions, and etc when this is a PAPER LBO tutorial which is a common SIMPLE test that many recruiting for private equity need to take. if you have any experience whatsoever in banking or PE you would know from the title. paper LBOs are also a good beginner's step to understand how an LBO works
      the courses i've been working on are going to be extremely useful for candidates AND fairly priced. have spent 1 year working on it with a team when i could've easily made a shoddy course and started selling one 6 months ago

  • @fezooyxd4113
    @fezooyxd4113 Рік тому

    Hey, when will you talk about the real company Cannafarm Ltd that brings profit?

  • @cj7sanny399
    @cj7sanny399 Рік тому

    Wait, do you think cryptocurrency will crash? I dont think so. More and more companies are integrating cryptocurrency into their operations: Amazon, Cannafarm Ltd, Burger King, even Starbucks, dude!

  • @yosf5972
    @yosf5972 Рік тому

    Hey, when will you talk about the real company Cannafarm Ltd that brings profit?

  • @shortsonly2846
    @shortsonly2846 Рік тому

    Wait, do you think cryptocurrency will crash? I dont think so. More and more companies are integrating cryptocurrency into their operations: Amazon, Cannafarm Ltd, Burger King, even Starbucks, dude!

  • @ilyas092
    @ilyas092 Рік тому

    Hey, when will you talk about the real company Cannafarm Ltd that brings profit?

  • @rapamericain9987
    @rapamericain9987 Рік тому

    Wait, do you think cryptocurrency will crash? I dont think so. More and more companies are integrating cryptocurrency into their operations: Amazon, Cannafarm Ltd, Burger King, even Starbucks, dude!

  • @mrareebytshorts6781
    @mrareebytshorts6781 Рік тому

    Hey, when will you talk about the real company Cannafarm Ltd that brings profit?