Resource
LBO model template
A free Excel LBO template — assumptions, sources and uses, a debt schedule with cash sweep, and a returns block. No email address, no sign-up, no macros.
Written by CA Pranay Bhansali, Founder & Principal, Volaxi — Chartered Accountant (ICAI), former senior buy-side research analyst.
Last reviewed September 2026 · LinkedIn
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LBO model template — Excel workbook
Four tabs, formula-driven, non-circular. Blue inputs on the assumptions tab; everything else calculates. Replace the placeholder assumptions with deal facts before relying on any output.
The template in summary
| Topic | What it covers |
|---|---|
| Format | Excel workbook (.xlsx), four tabs, no macros, no email required. |
| Assumptions | Entry multiple, leverage, pricing, operating drivers and exit in one input tab. |
| Sources & Uses | Enterprise value, fees and debt quantum, with sponsor equity as the residual. |
| Model | Operating build, cash flow available for debt service, amortisation and cash sweep. |
| Returns | Exit equity value, money multiple and IRR over the hold period. |
| Scope | A starting structure — covenants, PIK tranches and a full three-statement build are not included. |
01
Assumptions
Every input in the workbook lives on one tab, formatted in blue on a pale background. Nothing else in the model should be typed over — if a formula is overwritten, the workbook stops reconciling and the reviewer has no way of knowing.
Entry
Entry EBITDA, entry multiple, transaction fees and financing fees.
Debt
Senior and mezzanine quantum as a multiple of EBITDA, pricing, mandatory amortisation and the sweep percentage.
Operating
Revenue, growth, EBITDA margin, capex, working capital intensity, cash tax rate and depreciation.
Exit
Exit multiple and hold period, which drive the returns block.
02
Sources and uses
Enterprise value is the entry multiple applied to entry EBITDA; fees are calculated off the enterprise value and the debt drawn. Sponsor equity is the residual of the structure, not an input chosen to produce a target return — which is the discipline most downloaded templates get wrong.
A balance check at the foot of the tab must read zero before anything downstream is relied on.
03
Operating build and debt schedule
The model runs a six-year operating forecast from revenue through EBITDA to cash flow available for debt service, after cash interest, cash taxes, capex and the working capital movement.
The debt waterfall then applies mandatory senior amortisation first and the excess cash flow sweep second, capped at the senior balance outstanding. Interest is calculated on opening balances so the workbook stays non-circular and can be audited by someone who did not build it.
04
Exit and returns
Exit enterprise value is the exit multiple applied to the exit-year EBITDA, less net debt at exit. The result is reported as sponsor equity value, money multiple and an annualised IRR over the hold period selected on the assumptions tab.
05
What the template deliberately does not do
This is a starting structure for analysis, not a transaction-ready model. Stating the limits is more useful than pretending a free download replaces a deal model.
Covenant testing
Leverage and cover tests on facility agreement definitions, with headroom to breach, are not modelled.
Tranche complexity
PIK accrual, unitranche step-downs, revolver mechanics and hedging are not included.
Three statements
There is no integrated balance sheet or cash flow statement, so no full balance check across periods.
Equity waterfall
Management incentive, preferred instruments and the distribution waterfall sit outside this workbook.
Common questions
Is the LBO model template free?
Yes. The Excel file downloads directly with no email address, sign-up or payment required.
What is included in the LBO model template?
Four tabs: assumptions, sources and uses, a six-year operating and debt schedule with mandatory amortisation and an excess cash flow sweep, and a returns block showing exit equity value, money multiple and IRR.
Can I use this template for a live transaction?
It is a starting structure. Covenant testing on facility agreement definitions, PIK and revolver mechanics, and an integrated three-statement build need to be added before the model supports a real financing decision.
Does the model contain circular references?
No. Interest is calculated on opening debt balances so the workbook runs without iterative calculation and can be reviewed by someone who did not build it.
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