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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

The equity waterfall: rollover, options, and preferred

Exit equity is not all the sponsor's. Management rolls equity and gets an option pool, co-investors may hold preferred, and each takes its share before the sponsor's MOIC is real.

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