LBO Lab
Each level is a fictional leveraged buyout with a live model. Change the shaded inputs, watch the returns and covenants move, and answer the question. All levels are open; the order below is the recommended climb.
1
One tranche, no sweep
Harbourline Freight · Regional trucking and warehousing
IRRMOICnet debt at exit
Not played yet
2
What a cash sweep is worth
Brightwell Dental Supplies · Distribution to dental practices
cash sweepdeleveragingIRR bridge
Not played yet
3
The price of one turn
Kestrel Print & Pack · Specialty packaging
entry multipletwo tranchesequity funding
Not played yet
4
Average balance interest
Marlow Fieldwork Services · Utility field services
circular referenceiterative calcopening vs average
Not played yet
5
PIK compounding
Ashgrove Water Systems · Water treatment equipment and service
PIKcompoundingexit equity
Not played yet
6
Downside: how much senior debt?
Tidewater Cold Storage · Temperature-controlled logistics
interest coverdownside casedebt capacity
Not played yet
7
How far can EBITDA fall?
Penrose Learning Group · Vocational training
leverage covenantheadroomEBITDA cushion
Not played yet
8
Rollover and the MIP
Quillon Signal Technologies · Industrial signalling software
management rolloverMIPsponsor vs total equity returns
Not played yet