Calculator Inputs
Large screens show three columns. Smaller screens show two. Mobile shows one.
Example Data Table
| Example Item | Value | Notes |
|---|---|---|
| Purchase Price | $50,000,000.00 | Illustrative deal value for testing. |
| Debt Funding % | 65.00% | Debt share of total uses. |
| Starting Revenue | $18,000,000.00 | Annual base revenue before growth. |
| Base EBITDA | $3,240,000.00 | Revenue multiplied by margin. |
| Example Exit Equity Value | $23,076,195.86 | Enterprise value less ending debt. |
| Example Equity IRR | 4.96% | Based on the sample assumptions above. |
Formula Used
Entry EBITDA = Starting Revenue × EBITDA Margin
Total Uses = Purchase Price + Closing Fees + One-Time Integration Cost
Entry Debt = Total Uses × Debt Funding %
Entry Equity = Total Uses − Entry Debt
FCF Before Debt = EBITDA − Capex − ΔNWC − Taxes − Integration Cost
Ending Debt = Opening Debt − Mandatory Amortization − Cash Sweep
Exit Enterprise Value = Exit EBITDA × Exit EBITDA Multiple
Exit Equity Value = Exit Enterprise Value − Ending Debt
MOIC = Exit Equity Value ÷ Entry Equity
IRR = Annualized return from entry equity to exit equity
This model uses a simplified single-debt structure. It is ideal for planning, screening, and scenario testing.
How to Use This Calculator
- Enter the expected purchase price and closing costs.
- Add current revenue and the starting EBITDA margin.
- Set growth, margin change, capex, working capital, and tax assumptions.
- Choose the debt share, interest rate, and annual amortization rate.
- Add people synergy savings and one-time integration expenses.
- Select the hold period and exit multiple.
- Press the calculate button to show results above the form.
- Use the CSV and PDF buttons to export the model outputs.
Frequently Asked Questions
1. What does this leveraged buyout calculator measure?
It estimates entry funding, annual cash flow, debt paydown, exit value, MOIC, and IRR. It helps test whether a deal structure can create acceptable equity returns under different operating assumptions.
2. Why are people synergy inputs included?
Many acquisitions depend on staffing efficiencies, retention planning, and operating redesign. This field lets teams model recurring labor savings or productivity improvements without changing every operating line item manually.
3. What is cash sweep in this model?
Cash sweep is extra debt repayment using free cash flow after mandatory amortization. Higher free cash flow reduces ending debt faster and often improves exit equity returns.
4. What does DSCR mean?
DSCR means debt service coverage ratio. It compares available free cash flow with interest and scheduled principal, helping users judge whether the business can realistically support the financing package.
5. Is this model suitable for full transaction execution?
It is best for screening and scenario analysis. Real transactions often require detailed debt tranches, fees by facility, management rollover, seasonal cash flow, and tax structuring advice.
6. How does the exit multiple affect results?
A higher exit EBITDA multiple increases enterprise value at sale. Because debt is subtracted from enterprise value, even small multiple changes can materially shift equity value and IRR.
7. Can I model margin expansion or contraction?
Yes. Use the annual margin change field to raise or lower EBITDA margin each year. This is helpful when integration savings, pricing pressure, or restructuring plans affect profitability.
8. Why does the tool show results above the form?
This layout keeps the outcome visible immediately after submission. Users can review the returns, export files, and compare assumptions before scrolling back to adjust inputs.