10 February 2022

Debt modelling (with LBO)


Discover how to construct a flexible model capable of analysing the suitability of target businesses for a leveraged buy-out.

Who should attend?
Finance professionals who need to create, analyse and interpret debt cash flow models. The course is set in the context of an LBO transaction, but is relevant to any form of debt modelling. Delegates without a good understanding of basic excel functionality should first attend the one-day Introduction to Excel course.

What you will gain
This one-day course is designed for finance professionals looking to improve their financial modelling skills in the context of a typical debt model. Debt modelling poses particular problems that require solutions based around specific Excel functionality. LBO theory is covered briefly at the start but the focus is very much on the practicalities of building the model.

During this course delegates will construct a debt cash flow model in the context of an LBO transaction. The inputs to the model will be the operating cash flows of a business alongside some typical LBO debt constraints, and via the modelling of the debt cash flows, the Internal Rate of Return (IRR) of the transaction will be determined (and subject to a sensitivity analysis). Best practice financial modelling will be applied throughout.

Programme outline

Key features of an LBO transaction

  • Length of investment
  • Exit routes – Initial Public Offering (IPO), trade sale, secondary buyout, liquidation
  • Cash generation and profitability growth of business being acquired
  • Source, length and credibility of forecasts
  • Finance mix

Creating the operating model

  • Forecasting the operations of a business
  • Sales, EBITDA and working capital
  • Capex and depreciation

Sources and uses of funds

  • Uses of funds: equity acquisition, refinanced debt, fees
  • Sources: debt capacity constraints; senior tranches; mezzanine

Building the debt schedules

  • Circularity issues
  • Capital repayment options
  • PIK interest
  • Revolver
  • Cash sweep
  • Cash flow waterfall


  • EBIT vs PBT
  • Tax treatment of interest 

Equity return

  • IRR
  • Cash/money multiple

Sensitivity analysis


A good knowledge of basic Excel functionality, which can be gained on Introduction to Excel

Information for Online Live dates
Please read the following guidance carefully, which only applies if you are attending this course online:

  • In addition to the Online Classroom, you will need to have your own version of Excel open to complete the exercises
  • It is difficult (but not impossible) to do this with only 1 screen as you will need to be regularly switching between open windows. We recommend to either:
  • Extend from a computer to a 2nd screen, or
  • Use 2 computers, or
  • Use a tablet for the online classroom and a computer for the Excel
  • You are strongly recommended to perform the exercises on a PC rather than a MAC. Using a MAC is possible but the trainer will be unable to help you with the required shortcuts.

The course starts at 9.00am. Lunch and refreshments are included.
6 CPD hours (where applicable). 

CIMA work in partnership with BPP Professional Education to offer CPD training courses

Booking Information

Date Location Price
10 February 2022 - 09:00 Online Live Price: GBP 730.00
Member price: £657. Plus VAT on all prices.
8 June 2022 - 09:00 London Price: GBP 730.00
Member price: £657. Plus VAT on all prices.
14 October 2022 - 09:00 London Price: GBP 730.00
Member price: £657. Plus VAT on all prices.

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Debt modelling (with LBO)

CIMA members and students should log in to MY CIMA before booking to receive the appropriate discount.

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In-house training 
We can develop tailored training programmes to enhance the finance and business skills of staff across your organisation. To discuss how we can meet your learning and development needs please email us.

Find out more 
If you have any queries please email or phone us on: +44 (0)3300 603400.

The venue for this course will be confirmed 14 days before the scheduled date. 

CIMA work in partnership with BPP Professional Education to offer CPD training courses.  

This course will be delivered by BPP Professional Education Limited (“BPP”).  Accordingly, when you sign up for this course, CIMA will pass on the contact details you have provided to BPP so that they can contact you to complete your booking and process payment.  BPP will process any personal information it collects about you in accordance with its privacy policy, which is available at:

The information provided to BPP will not be used by BPP for marketing purposes.

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