Description

The LBO Challenge asks participants to build an LBO model using live data from Felix. Participants must incorporate assumptions provided and calculate the internal rate of return (IRR). If the target IRR provided is not achieved, participants must amend the model to boost up the IRR. The solution we are giving you is at May 15 2025. Your numbers will look a bit different if you are using live financial data, but your overall conclusion and analysis should be the same.

Learning Objectives

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1. Structure a complete LBO model including sources and uses, operational forecasts, and returns analysis.
2. Use public market data and consensus forecasts to calculate acquisition enterprise value.
3. Evaluate deal feasibility by calculating IRR and adjusting assumptions to reach investor return thresholds.
4. Incorporate circular references and model detb and interest expense.
5. Enhance equity returns by adjusting capital structure using preferred equity.