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Leveraged Buyout LBO Modeling Course Overview

A leveraged buyout model – or LBO – is one of the most common models built at investment banks and private equity firms. This advanced class covers modeling best practices, creating multiple scenarios for assumptions, modeling the income statement and cash flow statement, as well as a complex capital structure. Additionally, we cover the calculation of IRR and cash-on-cash returns, credit metrics and covenants, error checks, and a dashboard with multiple types of charts and sensitivity analysis.

Leveraged Buyout LBO Modeling Learning Objectives

By the end of the course, you should be able to:
  • Define a leveraged buyout (LBO) and build a simple LBO model.
  • Identify the characteristics of good candidates for LBO transactions.
  • Examine a number of typical LBO exit strategies used by private equity firms.
  • Outline the typical capital structure of an LBO transaction in terms of leverage and types of capital.
  • Explain the characteristics of each piece of capital and its position and priority in the capital stack.
  • Construct a full LBO model and evaluate the merits of the transaction by examining the equity returns.

Who Should Take this Leveraged Buyout LBO Modeling Course?

This LBO modeling course is most suitable for professionals working in investment banking and private equity, although it may also be useful for professionals in corporate development or other areas of finance.

Recommended Prep Courses

These preparatory courses are optional, but we recommend you to complete the stated prep course(s) or possess the equivalent knowledge prior to enrolling in this course:
  1. Excel Fundamentals – Formulas for Finance
  2. Building a 3 Statement Financial Model
  3. Business Valuation Modeling Part I

Leveraged Buyout (LBO) Modeling

Get Started

Level 5

Approx 15h to complete

100% online and self-paced

Get Recognized With CFI

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What you'll learn

Course Summary
Qualified Assessment

This Course is Part of the Following Programs

Why stop here? Expand your skills and show your expertise with the professional certifications, specializations, and CPE credits you’re already on your way to earning.

Financial Modeling & Valuation Analyst (FMVA)® Certification
Leveraged Buyout (LBO) Modeling is part of the Financial Modeling & Valuation Analyst (FMVA)® certification, which includes 42 courses.
  • Skills Learned Financial modeling and valuation, sensitivity analysis, strategy
  • Career Prep Investment banking and equity research, FP&A, corporate development

What our students say

Truly Valuable
Truly recommend for those whom seek complex transaction in real world finance.

Rodrigo Cardenas

CFI saves Bankers! Excellent course for practical training. Helped improve my efficiency at work. Great complement to the CFA curriculum because you get to apply what you learn.


Great course for Beginners
I love this course and the way it is being taught. Even as a beginner, I learned quite a lot of the new area and I am quite confident to apply this knowledge. Thank you

Debasis Sengupta

CFI is the best place to learn finance
CFI is the best place to learn finance. They filter out the noise, focus on what really matter to finance in the real world and deliver rich contents all through their courses. I wish I had found them earlier.

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Frequently asked questions

What are the requirements to take the courses?
All of our certification programs are open to students and professionals in various industries and levels of experience. Our curriculum is designed to teach what you need to know from basic fundamentals to advanced practical case studies. To take the courses and complete the exercises, students will only need access to a PC and/or Mac, Microsoft Suite (2016 or newer), and a stable internet connection. Click here to view the Technical Requirements
Can I download the Excel files and financial modeling templates for the course?
Absolutely! All the files and templates needed in a course are available for download. Just look for a module that shows Downloadable Files within the course dashboard. See here for a visual guide on how to do this.
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How are the exams conducted?
Students are required to complete an online assessment (Multiple choice questions, Fill-in-the-Blanks, and Excel Questions) at the end of each course. You can take the exams on your own schedule and will need to earn at least 80% to pass the course and earn your certificate of course completion. Please note that course exams can be repeated as many times as you need. Students are also required to complete the FMVA® final exam to earn their certification. How to Take a Qualified Assessment
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While the courses are designed mainly for self-study, we are happy to provide email assistance for general or technical support inquiries. The Full Immersion bundles include a premium email support function that allows you to communicate directly with in-house experts regarding course content. This is one of the key features that sets the Full Immersion bundle apart and makes it a worthwhile upgrade over the more affordable self-study bundle. You can compare more features in our bundles here.
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Based on hundreds of reviews from thousands of students we know how CFI courses have helped so many people advance their finance careers. Our courses are designed to be extremely practical and simulate the experience of being trained as a professional financial analyst…the ultimate way to advance your career. For real-world examples and to help delve even deeper into the course concepts, please look into our free career resources library.
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