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Learn/LBO modeling in depth
LearnLBO modeling in depth

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B Basic

  • The debt schedule, tranche by tranche10m
  • Interest, average balances, and the circularityPro10m
  • Returns math, fast, and which levers matterPro11m

A Advanced

  • The cash sweep under a credit agreementPro12m
  • PIK, OID, and financing fees in the modelPro12m
  • Partial exits, follow ons, and IRR with many cash flowsPro12m
  • The equity waterfall: rollover, options, and preferredPro13m
  • FlashcardsPro0/15
  • Basic quizPro80% passes
  • Advanced quizPro80% passes
  • Terms

PIK, OID, and financing fees in the model

Three items that change cash, interest, and returns in different ways. PIK grows the debt, OID means the company gets less than it owes, and financing fees are paid in cash but expensed over years.

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