LBO Model
Demo #9 — Aurora Capital Partners acquires Sava Industrial: sources & uses at close, 5-year operating forecast, TLA/TLB/mezz paydown with cash sweep, and sponsor IRR/MOIC at exit.
Training scope & debt policy
Fictional PE buyout aligned with the Excel Demo #9 workbook (forward cash sweep on excess levered FCF). This is separate from the four industry simulators, which use Gate 1 exogenous debt inputs with no cash sweep. No live deal terms, covenant modeling, or revolver — educational use only.
Entry — Sava Industrial
8.0× LTM EBITDA entry (Demo #7 benchmark); $700M debt stack at close.
Entry EV ($M)
883.2
Entry EV / EBITDA
8.0×
Total debt at close ($M)
700.0
Debt / LTM EBITDA
6.3×
Sources & uses
Debt tranches + sponsor equity plug; management rollover reduces net check (Excel Sources & Uses).
Exit & sponsor returns
9.0× exit on Year-5 EBITDA; MOIC and gross IRR on sponsor net equity.
Debt paydown (hold period)
Mandatory amort plus 75% cash sweep on excess cash above minimum balance (TLB → TLA → Mezz).
| Year | Unlevered FCF ($M) | Mandatory amort ($M) | Cash sweep ($M) | Total debt end ($M) |
|---|---|---|---|---|
| Year 1 | 75.5 | 13.8 | 0.0 | 686.2 |
| Year 2 | 79.2 | 13.3 | 0.0 | 672.9 |
| Year 3 | 83.2 | 12.7 | 0.0 | 660.2 |
| Year 4 | 87.4 | 12.3 | 0.0 | 647.9 |
| Year 5 | 91.7 | 11.8 | 0.0 | 636.1 |
| Year 5 (exit year) | — | 11.8 | 0.0 | 636.1 |
Contrast strategic buyer EPS accretion (#8) with sponsor IRR/MOIC here; entry multiple ties to precedent comps (#7).