Companion files · The Buyout Investor
The Buyout Investor: Private Equity Buyouts by the Numbers: Entry Price, Leverage, Value Creation and Exit, Where the Return Really Comes From, With the Models Supplied.
These are the companion files of the book. A buyout fund pays $450.0 million for a mid-market industrial company earning $50.0 million, puts in $190.0 million of its own money and $275.0 million of borrowed money, buys an add-on, lives through a bad year and sells after five years for $417.4 million: 2.20x, 17.05 percent a year. The same company bought with no debt would have returned 11.96 percent; the subscriber who financed the fund earned 12.70 percent; one turn of exit multiple would have moved the equity by $76.7 million. Three workbooks reproduce every figure the book prints. No sign-up, no email is asked for, nothing is locked. Yellow cells with blue type are inputs; grey cells are formulas.
The archive holds the six files below, with 00_START_HERE.md at its root. No macros, no circular references, no external links in any workbook. They recalculate in Excel, LibreOffice or Google Sheets.
Chapters 3 to 10, 12 and 14
Kestrel Fluid Systems from the seller's adjusted EBITDA of $55.0 million to the $50.0 million the fund paid 9.0x for; sources and uses; the term loan, the second lien and the revolver year by year with interest on opening balances and the cash sweep; tax with the interest cap; a balance sheet that closes every year; the covenant that held by 0.12x in year 3; the exit waterfall with the option pool; the sponsor's IRR by annual and by dated flows. Every computed figure is a live formula, checked on the Checks sheet.
Download the workbook88 KBChapters 1, 6, 11 to 13, 15, 16 and 19
The bridge whose parts add to the $260.2 million gain; the exit multiple from 8.62 percent to 23.75 percent; the entry price with the debt held constant and the wrong table that resizes it; leverage at closing; the holding period; the plan delivered; the two-way grid; and the scenarios of the add-on, the bad year with its equity cure and its amendment, the recap, the unitranche, higher rates and the all-equity purchase, each on its own sheet as a complete live case.
Download the workbook524 KBChapters 17 and 18
Commitments behind the $190.0 million invested, the management fee, the preferred return compounded from each contribution, the catch-up and the $41.3 million of carry; 17.05 percent for the deal, 15.14 percent after fees, 12.70 percent net, 14.39 percent with a subscription line that adds not a dollar.
Download the workbook54 KBChapters 5, 7, 15 and 17
Sources and uses with the equity as the balancing item, a five-year one-page LBO model with a term loan, a sweep and an interest cap, a returns bridge, and a deal-to-fund sheet with fee, preferred return, catch-up and carry. Every input is empty and every output a live formula.
Download the workbook20 KBThe whole book
A separate, smaller deal. Start a timer, build the fifteen answers, then open the Score sheet and the Answer Key.
Download the workbook17 KBRead first
What each file is, which chapters it serves, the order to read them in and the conventions.
Download the read-me4 KB| The entry | Sources and uses of $475.0 million: $450.0 million of enterprise value, $15.0 million of fees, $10.0 million of cash; $275.0 million of debt at 5.5x EBITDA and $200.0 million of equity, 42.1 percent of the total |
| The bad year | Year 3: platform EBITDA down -19.8 percent, covenant leverage 4.63x against a maximum of 4.75x, headroom 0.12x; in the deeper version the test fails by 0.64x and the equity cure costs $7.0 million |
| The return | Bridge: $250.4 million of EBITDA growth, $35.3 million of deleveraging, no multiple change, -$25.5 million of fees, $260.2 million in all; the sponsor's 17.05 percent becomes 12.70 percent for the subscriber, and 14.39 percent with a subscription line |
The files are provided as they are, without warranty of any kind. The models are illustrative: the fund, the company, the lenders and every person in them are fictional, and the figures are the book's assumptions, not market statistics or forecasts. Nothing here is investment, legal or tax advice.