LBO Model

Financing Summary
Let's now take the financing case selected by the cell we named "fin_case" and display the sources and uses of funds for this case in the transaction overview/assumptions...
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Amortization of Capitalized Financing Costs
In a previous step, we assumed that most financing fees were capitalized as an asset on the company's balance sheet and amortized over the lives (i.e....
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Depreciation of Existing Fixed Assets
Recall that when we last looked at our income statement, we had only calculated up to EBITDA. To get to operating income (i.e. EBIT), we need to compute...
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Depreciation of Capital Expenditures
As the company makes capital investments, these assets will also depreciate. Now, let's add the depreciation associated with future capital expenditures....
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Operating Income (EBIT)
Now that we have our depreciation and amortization expenses in order, we can revisit the income statement to calculate operating income (i.e. EBIT). We...
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