SmartHelping / LBO & Valuation / Excel
5-Year LBO Financial Model
Evaluate a business acquisition using mapped T12 and T3 historical results, purchase-price multiples, debt and equity financing, a 60-month operating forecast, levered and unlevered DCF analysis, exit value, sensitivity tables, and an IRR-hurdle GP/LP waterfall.
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See the model in action
See how historical results become an acquisition forecast.
Watch the walkthrough, then open the screenshots to review the T12 and T3 inputs, purchase price, revenue and cost assumptions, leverage, cash flow, DCF, exit value, sensitivity, waterfall, and stakeholder returns.
What the model includes
A streamlined acquisition model from historical results to investor returns.
Map recent financial performance, define the transaction and operating case, and follow the results through leverage, valuation, sensitivity, and the GP/LP waterfall.
Model up to 60 monthly periods
Produce monthly and annual profit-and-loss and cash-flow projections for the acquisition over a five-year horizon.
Start from recent historical performance
Enter trailing-12-month and trailing-3-month results and map the historical lines to the model's pro forma structure.
Use EBITDA, revenue, or a manual value
Select the entry-valuation method from a dropdown and calculate the acquisition price using the chosen multiple or direct input.
Test the acquisition with or without leverage
Define the percentage of purchase price financed by debt and solve for the minimum equity required to close the transaction.
Model revenue, contra revenue, direct costs, and OPEX
Build the business case with five revenue streams, three contra-revenue items, five direct costs, and expandable operating expenses.
Compare value with and without leverage
Run levered and unlevered DCF analyses and optionally include exit value using a multiple of trailing-12-month EBITDA.
Configure IRR hurdles and GP catch-up
Model the distribution structure between GP and LP participants, including GP fee options and a catch-up feature.
Test leverage and exit assumptions
Use the IRR sensitivity table and review project, GP, and LP return outputs under alternative deal structures.
Historical-data framework
Turn the T12 and T3 into a controlled starting point.
The historical-input and validation logic helps align imported results with the pro forma and establishes the in-place revenue and EBITDA used in the acquisition analysis.
T12 input
Enter a full trailing year of historical performance to capture seasonality and the longer recent operating pattern.
T3 input
Enter the most recent three months to reflect the current operating run rate and any recent shift in performance.
Line-item mapping
Map historical categories to the corresponding pro forma revenue, contra-revenue, direct-cost, and operating-expense lines.
Weighted starting revenue
Assign weights to the T12 and T3 average monthly revenue figures and use the combined result as the starting basis for each revenue source.
Sign-switch validation
Reverse signs where the source records refunds, returns, costs, or other deductions in the opposite direction required by the pro forma.
In-place EBITDA
Confirm the mapped historical values produce the intended current EBITDA before applying the acquisition and forward assumptions.
Operating and transaction forecast
Build a top-down business case around the acquisition.
The flexible line-item structure is designed to work across industries while keeping the principal revenue, cost, investment, and financing drivers visible.
Grow each stream independently
Define monthly revenue growth by quarter for as many as five revenue sources across the 60-month forecast.
Account for refunds, returns, and deductions
Separate items that reduce gross revenue so the forecast produces a cleaner view of net sales.
Link COGS to total revenue
Define up to five cost-of-goods-sold or direct-cost categories as percentages of revenue and adjust them by quarter.
Forecast overhead and quarterly growth
Add operating-expense categories and set the monthly growth assumption for each item by quarter.
Separate acquisition-related growth spending
Use dedicated sales and marketing lines when customer acquisition spending is a material part of the operating plan.
Schedule capital investment by month
Enter up to five capital-expenditure categories directly across the monthly forecast to reflect the post-close investment plan.
Valuation and stakeholder returns
Connect acquisition terms, operations, exit, and the cash waterfall.
Review the deal from the project level and from the perspective of the GP and LP participants under the selected leverage and exit assumptions.
Levered and unlevered DCF
Compare enterprise economics before debt with the equity cash flows remaining after the financing structure.
Exit value
Turn the exit on or off and, when used, calculate proceeds from a multiple of trailing-12-month EBITDA.
IRR sensitivity
Test how the project return changes across different combinations of exit multiple and acquisition leverage.
Project-level outputs
Review project IRR and total net cash produced by the acquisition over the modeled period.
GP and LP outputs
Measure IRR, MOIC, ROI, total invested, total distributed, and the allocation of cash between the participants.
GP fees and catch-up
Configure fee options and a GP catch-up feature alongside the IRR-hurdle distribution structure.
How to use it
Move from source financials to a tested acquisition case.
Enter and map the T12 and T3
Load recent historical results, connect them to the pro forma lines, set the weighting, and use the sign controls to validate in-place EBITDA.
Define purchase price and financing
Select the EBITDA, revenue, or manual entry method, then set leverage and review the minimum equity required.
Build the 60-month operating case
Enter revenue growth, contra revenue, direct costs, operating expenses, sales and marketing, and monthly capital expenditures.
Review value, sensitivity, and distributions
Evaluate the levered and unlevered DCF, exit multiple, project IRR, sensitivity table, waterfall, GP fees, and GP and LP returns.
Who gets value from it
Built for teams evaluating operating-business acquisitions.
Independent sponsors and searchers
Translate seller financials into a five-year operating, financing, valuation, and investor-return case.
Private equity and acquisition teams
Test entry price, leverage, operating improvement, exit assumptions, DCF value, and the GP/LP distribution structure.
Business buyers and operators
Compare the historical run rate with post-close revenue, cost, capital-spending, and cash-flow assumptions.
Advisors and financial modelers
Use a flexible, industry-agnostic framework for acquisition screening, valuation, fundraising, and scenario analysis.
Also available in these bundles
Need a broader spreadsheet library?
The 5-Year LBO Financial Model is also included in the Joint Venture, Valuation, Industry-Specific, and Super Smart bundles.
Joint Venture Models
Compare preferred returns, IRR hurdles, promote splits, GP catch-ups, investor thresholds, and partner cash flows.
View Joint Venture ModelsValuation Models
Explore DCF, multiples, LBO, discount-rate, sensitivity, return-target, and business-value templates.
View Valuation ModelsIndustry-Specific Models
Access bottom-up and transaction-focused financial models designed around specific business types.
View Industry-Specific ModelsSuper Smart Bundle
Get the complete SmartHelping collection for forecasting, valuation, accounting, financing, real estate, and more.
View Super Smart BundleRelated financial models
Explore adjacent acquisition and valuation decisions.
Use these complementary SmartHelping templates for deeper LBO logic, operating recovery, valuation, discount rates, market sizing, and exit preparation.
Advanced Leveraged Buyout Model
Use a more complex LBO framework with detailed working-capital logic, inventory, and integrated financial statements.
Explore the advanced LBO modelBusiness Turnaround Model
Plan an operating recovery, compare scenarios, and model the economics between an operator and existing owners.
Explore the turnaround modelSmall Business Valuation
Estimate a business-value range and test the sensitivity of key earnings and valuation assumptions.
Explore the valuation modelDCF Sensitivity Analysis
Compare discounted-cash-flow outcomes across alternative discount rates, growth, and terminal assumptions.
Explore the DCF modelWACC Calculator
Estimate the cost of capital using debt, equity, CAPM, tax, and capital-structure assumptions.
Explore the WACC modelTAM Sizing Model
Build market-size and valuation scenarios using TAM, SAM, SOM, penetration, revenue, and multiple assumptions.
Explore the TAM modelExit Readiness Scorecard
Assess how prepared a business is for sale and identify operating, financial, and organizational gaps.
Explore the exit readiness modelCustom Financial Model Work
Request modifications to this LBO model or a custom acquisition and valuation framework for a specific transaction.
Contact SmartHelpingQuestions before you buy
A few useful details.
How long is the forecast?
The model runs for up to 60 months, or five years, and produces monthly and annual profit-and-loss and cash-flow projections.
How do the T12 and T3 inputs work together?
Historical lines are mapped into the pro forma, and weights can be assigned to the T12 and T3 average monthly revenue figures to determine the starting revenue basis.
How is the purchase price calculated?
Select EBITDA multiple, revenue multiple, or manual entry from the dropdown and enter the assumptions required by the chosen approach.
Can I model debt and solve for the required equity?
Yes. Define the percentage of purchase price financed with debt, compare levered and unlevered results, and review the minimum equity required.
Which waterfall and return outputs are included?
The model includes IRR hurdles, a GP catch-up feature, GP fee options, project IRR and net cash, plus GP and LP IRR, MOIC, ROI, invested capital, distributions, and GP fees.
How does this differ from the advanced LBO model?
This version is designed for faster data entry and includes T12 and T3 mapping plus the IRR-hurdle waterfall. The advanced LBO model adds more detailed accounts-receivable, accounts-payable, inventory, and three-statement logic.
Is it included in any bundles?
Yes. It is included in the Joint Venture, Valuation, Industry-Specific, and Super Smart bundles.
Underwrite the transaction in one connected model
Turn historical performance into acquisition value and investor returns.
Get the editable five-year model with T12 and T3 mapping, purchase-price methods, leverage, operating projections, levered and unlevered DCF, exit value, sensitivity analysis, and an IRR-hurdle GP/LP waterfall. One-time purchase for $45.
