Building an LBO Returns Model in Google Sheets

Leveraged buyout analysis doesn't require expensive software. With Google Sheets, you can build a professional-grade LBO model that calculates IRR and MOIC in seconds. Here's how.

What You'll Need

• Google account (free)
• Basic understanding of debt/equity structures
• ~30 minutes to follow these steps

Step 1: Set Up Deal Inputs

Create a clean input section: Entry Enterprise Value, EBITDA multiple, debt percentage, interest rate, and exit assumptions. Use data validation for drop-downs.

Step 2: Build Capital Structure

Table with Sources (debt, equity, rollover) and Uses (purchase price, fees). Formulas should auto-check that totals match.

Step 3: 5-Year Projection

Simple P&L: Revenue growth rate, EBITDA margin, D&A, interest expense, tax. Keep it to 5 columns (Year 1-5).

Step 4: Debt Schedule

Opening balance, mandatory amortization, interest, closing balance. Add an interest coverage ratio calculation.

Step 5: Exit Waterfall

Exit EV = EBITDA Year 5 × Exit Multiple. Deduct net debt. Allocate between sponsor and management.

Step 6: Returns Summary

Use XIRR for dates and cash flows. MOIC = total distributions / total equity invested.

Step 7: Sensitivity Matrix

Use data table (or manual formula grid) to show IRR across exit multiples and years.

Get the Fully-Built Template

If you'd rather skip the build and get a polished, formula-driven LBO Returns Model with all the above done for you, check out the ready-made Google Sheets template at microtoolsb2b.gumroad.com/l/... — just copy, input your numbers, and get IRR/MOIC instantly.

Happy modeling!