Eventually, we're going to break down the long-form LBO model for you into easy-to-follow steps. In the meantime, we want to provide you with a finished product that you can play with and reverse-engineer to further your understanding of the LBO model.
The long-form LBO model presented here is derived from the actual LBO models used by four bulge bracket investment banks and a model created by John Burns widely available on the web. We have tried to combine the best aspects of all these models into the one presented here. You'll find annotations throughout the model to facilitate your understanding of its structure and assumptions.
The short-form LBO model bypasses many of the complexities associated with the long-form version, and can be used as a starting point for understanding LBO modeling. The short-form model is recommended for educational use, only. Differences between the two versions of the LBO models are described in the short-form LBO model.