IB Masterclass 5: LBO

IB Masterclass 5: LBO

Following the BIWS LBO guide, this session covers what a leveraged buyout is and why it works, how an LBO is financed and modelled from entry to exit, and the three main levers of LBO value creation, followed by group practice on the technical questions interviewers actually ask.

What You'll Discover

• LBO Fundamentals: What an LBO is, why PE firms use leverage to amplify returns, and how a deal is financed across sponsor equity, leveraged loans, and high yield debt.
• Building the Model: How to walk through an LBO model from entry assumptions and Sources & Uses, through debt paydown and projections, to exit assumptions.
• How LBOs Create Value: The three levers of returns, deleveraging, operating improvement, and multiple expansion, illustrated with worked examples and IRR calculations.
• What Makes a Good LBO Candidate: The financial, qualitative, and exit-strategy criteria PE firms screen for.

Who Should Join
Anyone preparing for finance interviews across IB or PE who wants to master LBO mechanics and IRR calculations, a core technical topic in PE interviews especially. Attending Masterclasses 2-4 first is recommended but not required.