Core Engagement
Transaction & LBO modelling
Structure, leverage and returns modelled the way they will actually be negotiated — tranche-level debt mechanics, covenant testing and returns attribution in a file a lender or investment committee can follow.
When it is used
Sponsor bid preparation
Entry pricing, leverage capacity and returns tested across cases before a bid is submitted.
Debt structuring and lender talks
Tranche sizing, amortisation, cash sweep and covenant headroom modelled for a credit submission.
Merger and acquisition analysis
Pro forma capitalisation, accretion / dilution and synergy phasing under alternative consideration mixes.
Search fund and independent sponsor deals
Structuring the capital stack, sponsor economics and investor returns for an acquisition.
Models built
Detail is set by what is being negotiated — the capital structure, the mechanics at close and the cases the decision turns on.
LBO model
Sources and uses, transaction fees, opening balance sheet, debt schedule, sweep mechanics and IRR / MoM attribution.
Debt capacity analysis
Sustainable leverage under stressed cases, tested against fixed charge, leverage and interest cover covenants.
Merger / accretion-dilution
Combined forecast, purchase price allocation, financing mix and EPS impact by year.
Returns attribution
Value creation split between deleveraging, EBITDA growth and multiple movement.
Structuring and waterfall
Instrument-level modelling of preference, ratchets, sweet equity and management incentive outcomes.
Completion mechanics
Locked box versus completion accounts, price adjustment mechanics and funds flow at close.
The build standard
Single case switch
Every scenario driven from one control, so downside and upside are reproducible rather than saved as separate files.
Controlled circularity
Interest and sweep circularity handled with a documented switch and a working error check.
Debt schedule discipline
Each tranche modelled on its own terms — margin, floor, PIK, amortisation, cash sweep priority and prepayment.
Auditable returns
IRR and money multiple traceable to the cash flows that produce them, with no hardcoded overrides.
Reviewable structure
Inputs, calculations and outputs separated, with conventions documented for a third-party reviewer.
What is delivered
Working LBO / transaction model
Fully linked Excel file, unprotected, with structure documented.
Scenario and sensitivity output
Entry / exit multiple, leverage and operating case grids on the returns metrics.
Debt schedule and covenant test
Tranche-level schedule with headroom analysis across the forecast period.
Investment committee exhibits
Summary output pack formatted for IC or lender audiences.
Handover walkthrough
Live session through the mechanics, with a revision window after delivery.
Engagement process
Typically two to four weeks, compressed where a bid deadline requires it.
01
Scoping call
The decision the model must support, the structure being considered and the timetable.
02
Information request
Historical financials, forecast, indicative term sheets and any existing model.
03
Build with checkpoints
Structure agreed before detail is added, with interim output shared as the build develops.
04
Testing
Integrity checks, covenant and sensitivity runs, and an internal review pass.
05
Handover
Walkthrough, documentation and support through the negotiation as terms move.
Discuss an Engagement
If you require support with financial modelling, business valuation or financial due diligence for a live transaction or strategic engagement, we'd be pleased to discuss your requirements.