LBO Model

Now, let's calculate the target's last-twelve-month ("LTM") income statement. To do so, we simply take the last fiscal year results, add the most recent...

In many cases, there will be a period of time between the transaction closing date and the date of the next fiscal year-end. In our case, this is 2 months....

Now that we've begun to build our income statement let's switch gears and set up our balance sheet. For now, we are going to simply plug in historical...

Now, let's calculate the target's fully-diluted shares outstanding ("FDSO"), as we will need this figure to calculate enterprise value in the next step....

Now that we have calculated the target's fully-diluted shares outstanding ("FDSO"), let's compute enterprise value at the assumed purchase premium. The...