What is Leveraged Buyout (LBO) Modeling?

Introduction

You're evaluating a buyout or pitching one - a LBO model shows whether buying a company with borrowed money makes economic sense for equity holders. This intro lays out the model structure and the questions to answer: what purchase price and financing mix produce the target equity multiple and IRR (internal rate of return), whether operating cash flow covers interest and debt paydown, and how sensitive returns are to revenue, margins, or covenant breaches. One-liner: LBOs use debt to amplify returns but also amplify risk. Use the model to surface deal breakpoints - price, leverage, or exit timing - so you can judge if the deal is defintely accretive for shareholders.

Key Takeaways

• An LBO model tests whether buying a company with borrowed money delivers target equity returns (IRR, MoM) while showing where leverage amplifies risk.
• Lock down 6-8 core assumptions first: purchase price/entry multiple, operating forecast (growth, margins, capex, WC), financing terms, and exit assumptions.
• Model mechanics: build sources & uses, a 3‑statement projection, and a detailed debt schedule-these determine whether cash flow covers interest and debt paydown.
• Value creation comes from EBITDA growth, margin expansion, capex/WC efficiency, multiple expansion, and add‑ons; principal risks are refinancing, covenant breaches, and macro shocks.
• Keep the model modular, reconcile cash to net debt, stress‑test downside scenarios (rates, multiples, revenue), and produce sensitivities for price, leverage, and exit timing.

Purpose and when to use an LBO model

You're evaluating a buyout or pitching one - you need a crisp, numbers-driven yes/no on whether leverage converts a purchase into attractive equity returns. Below I map the practical steps you should run, the checks lenders will demand, and the outputs you must show to decision-makers.

Assess deal feasibility

Start by testing whether projected cash flows can carry the planned debt load and still deliver target returns. Build a 5-year operating forecast (revenue, margin, capex, working capital, tax) and convert that into free cash flow available for debt service. Lenders look for clear interest-coverage and debt-service coverage ratios; you should too.

Steps to run now:

• Forecast EBITDA for years 1-5 from drivers (price, volume, productivity).
• Estimate maintenance capex and working-capital needs; subtract taxes to get unlevered FCF.
• Layer projected interest and mandatory amortization to get free cash flow to equity.
• Calculate interest coverage (EBITDA / cash interest) and DSCR (FCF / debt service).

Quick example math: if run-rate EBITDA = $120m and you target 4.0x net leverage, gross debt capacity ≈ $480m. With an entry EV/EBITDA of 8.0x, EV = $960m; if transaction fees are 3% (~$28.8m), required equity = Uses - Debt = $988.8m - $480m = $508.8m. What this estimate hides: sensitivity to EBITDA paths, capex spikes, and working-capital volatility - stress test severe down-cases where coverage ratios fall below 1.5x.

One-liner: Use an LBO when you need a numbers-driven yes/no for leveraged acquisition.

Set financing plan

Design a tranche mix that balances cost, covenants, and refinancing risk. Typical debt layers: senior secured term loans (amortizing), second-lien or unitranche, and mezzanine or equity-like PIK. In the 2025 rate environment, expect senior coupons in the mid single digits to high single digits and subordinated debt materially pricier - model a blended cost of debt, then test covenant headroom.

Practical steps and best practices:

• Run debt-capacity scenarios at leverage multiples of 3.0x, 4.0x, and 5.0x.
• Model tranche mix: e.g., 60% TLA at 6.5%, 30% TLB at 8.0%, 10% mezz at 14%; compute weighted interest.
• Build covenants: leverage covenant (Net Debt/EBITDA), interest coverage, minimum liquidity.
• Set amortization and cash sweep mechanics; require contingency liquidity equal to 3-6 months of fixed charges.

Negotiation checklist: push for flexible covenants and step-down amortization, secure a revolver with usable borrowing capacity, and price in refinancing risk (maturity cliffs). Also, defintely document covenant tests at quarter- and year-end to show lender comfort.

One-liner: Set financing to minimize refinancing risk while keeping interest cost supportable across stressed cash flows.

Compare returns

Show IRR (internal rate of return) and MoM (multiple on money) across base, upside, and downside cases; make exit assumptions explicit. Use a 3-7 year hold horizon and run sensitivities on exit multiple and EBITDA growth to isolate the drivers of equity returns.

Concrete steps:

• Project equity cash flows: initial equity outflow, dividend recap or interim distributions, final equity proceeds at exit (EV = EBITDA × exit multiple - net debt).
• Compute IRR and MoM for hold periods of 3-7 years; report payback years and cash-on-cash timing.
• Sensitivity matrix: exit multiple (±2 turns) versus EBITDA CAGR (-5% to +10% annually).

Example quick calc: entry equity = $508.8m; if EBITDA grows from $120m to $170m in year 5 and exit multiple is 8.5x, exit EV = $1,445m. If net debt at exit is $200m, exit equity ≈ $1,245m, MoM ≈ 2.45x, and IRR ≈ ~20%. What this hides: IRR is sensitive to timing of cash flows and terminal multiple; a 1.0x change in exit multiple can swing IRR by several hundred basis points.

One-liner: IRR and MoM tell you whether leverage achieves the sponsor's target returns under realistic scenarios.

Core inputs and assumptions

You're evaluating a buyout or pitching one - start by locking the numbers that drive debt capacity and equity returns. Quick takeaway: define purchase price, a 3-5-year operating plan, financing terms, and exit assumptions before you model debt paydown and returns.

Purchase price and operating forecast

Step 1: set the entry multiple and base EBITDA. Calculate enterprise value (EV) as EV = entry multiple × run-rate EBITDA. Example (FY2025 example): run-rate EBITDA $50.0m at an entry multiple of 10.0x implies EV = $500.0m.

Step 2: convert EV to cash needs. Subtract or add net debt to get equity purchase price; add transaction fees and rollover equity to get total uses. Example uses worksheet (FY2025 example):

• Enterprise value = $500.0m
• Net debt assumed at close = $20.0m
• Equity purchase price = EV - net debt = $480.0m
• Transaction fees (advisory, legal, financing) ≈ 2.0% of EV = $10.0m
• Total uses = $490.0m

Step 3: set equity contribution and solve for debt. If sponsor equity = 30.0% of EV (a common planning assumption), equity = $150.0m, so debt must supply the remaining $340.0m of sources to cover total uses.

Operating-forecast inputs to lock early:

• Revenue growth (CAGR for forecast years)
• EBITDA margin and trajectory
• Capital expenditures (capex) by line item
• Working-capital days (receivables, inventory, payables)
• Effective tax rate (use conservative corporate-rate estimate)
• One-off items and normalization adjustments

Here's the quick math: if revenue grows from $250.0m and EBITDA margin expands from 20.0% to 24.0% in five years, EBITDA rises from $50.0m to $60.0m, which changes debt capacity materially. What this estimate hides: working-capital pulls and capex timing can flip free cash flow in early years.

Practical tips: document assumptions for each driver, model year-by-year - not just CAGR, stress test margin downgrades by ≥300bps, and include a management rollover (2-10% equity) to align incentives. Keep the forecast granular enough to explain cash flow drivers to lenders.

One-liner: crystallize the 6-8 central assumptions first so you can change variables cleanly.

Financing terms and debt structure

Define the debt tranches and their mechanics before you size leverage. Typical tranches: a senior secured term loan (amortizing), a second-lien or unitranche, a revolver (working-capital facility), and subordinated debt or mezzanine. Each has different cash-interest, PIK (payment-in-kind) options, and amortization schedules.

Example FY2025 financing mix (illustrative):

• Senior term loan A = $200.0m at cash interest 7.5%, amortizing 5.0% per year
• Term loan B = $100.0m at cash interest 9.5%, minimal amortization
• Mezzanine/subordinated = $40.0m at cash/PIK blended 12.0%
• Revolver capacity = $50.0m (drawn $0.0m at close assumed)

Quick interest math (FY2025 example): interest expense year 1 = $15.0m (TLA) + $9.5m (TLB) + $4.8m (mezz) = $29.3m; weighted average cash interest ≈ 8.6% on $340.0m debt. With base EBITDA $50.0m, interest coverage ≈ 1.7x - low for maintenance lenders, so either reduce leverage or improve covenants.

Key covenant and liquidity items to model explicitly:

• Maintenance covenants (net leverage ratio, interest-coverage ratio) - model quarterly
• Incurrence covenants (limits on dividends, M&A, additional debt)
• Revolver availability and borrowing base formula (often AR and inventory)
• Mandatory amortization and cash-sweep waterfall (excess cash flow to debt)

Best practices: build a line-by-line debt schedule that rolls principal balances, computes cash vs. P&L interest, enforces amortization and cash sweep rules, and tests covenant formulas each period. If a covenant trips in any projection, flag remedial options (equity cure, waiver, refinancing). Also model revolver draws in a downside where working capital turns negative.

One-liner: the debt schedule is where deals live or die - model interest, amort, and covenants explicitly.

Exit assumptions and returns mechanics

Set your exit logic early: hold period, exit multiple, and sell costs drive terminal equity value and IRR. Anchor the exit multiple to comparable M&A and private-markets data, then stress it ±1.0-2.0x. Typical hold = 3-7 years; private equity commonly plans 4-6 years.

Example FY2025 exit path (illustrative):

• Hold period = 5 years
• Exit EBITDA in year 5 = $80.0m (from operating forecast)
• Exit multiple = 10.5x
• Gross exit EV = $840.0m
• Net debt at exit = $150.0m
• Equity proceeds = EV - net debt - transaction fees (~2.0%) ≈ $690.0m

Quick returns math (FY2025 example): sponsor equity in = $150.0m, proceeds out = $690.0m, MoM = 4.6x. Approximate IRR over 5 years = (4.6)^(1/5) - 1 ≈ 35.7%. What this estimate hides: waterfall allocations to management/secondaries, taxes on exit, and post-close net-debt swings.

Stress-test exit outcomes: build a 3×3 sensitivity table with low/base/high for both EBITDA growth and exit multiple. Show lender and investor IRR breakevens (e.g., entry multiple or minimum EBITDA growth needed to hit target IRR). Document scenarios: base, downside (-25% EBITDA; -2.0x multiple), upside (+25% EBITDA; +1.0x multiple).

Practical considerations: include equity rollover and secondary sales, model hold-versus-recap options, and show the effect of early debt repayment or refinancing on returns. Also model transaction fees and taxes separately to avoid overstating net proceeds.

One-liner: Garbage in, garbage out - crystalize the 6-8 central assumptions first.

Key model mechanics and outputs

You're building an LBO model to decide if buying a target with borrowed money makes sense for equity - so start with the mechanics that produce cash flows and returns, not with a target IRR. Below I lay out concrete steps, a worked FY2025 example, and the checks that catch math or covenant errors early.

Build sources & uses and the three-statement projection

Start by sizing the deal at close, then project the business for years 1-5 on three linked statements: income, balance sheet, cash flow.

• Map purchase economics: entry multiple, target FY2025 EBITDA, EV, fees.
• Size financing: equity check, each debt tranche, fees, and revolver capacity.
• Project operations: revenue growth by driver, gross/EBITDA margins, D&A, capex, working-capital needs, tax rate.
• Link statements: net income feeds retained earnings; capex and D&A affect PP&E; changes in receivables, payables, inventory flow to cash.

Example (FY2025 illustrative): assume FY2025 EBITDA $120.0m, entry multiple 7.0x → enterprise value $840.0m. Assume total fees and transaction expenses 2.0% → $16.8m.

Sources & uses (example):

Best practices:

• Build inputs on a single sheet and reference them throughout.
• Project at the driver level (volumes, price) when possible, not just margin percentages.
• Reconcile closing cash and net debt to the balance sheet each year.

One-liner: nail the sources & uses and the 3-statement links first - everything else depends on them.

Construct the debt schedule and compute equity returns

The debt schedule is the operational heart of an LBO - interest, mandatory amortization, cash sweep triggers, and covenant tests determine both survival and return.

• Model tranches separately: senior term loan (amortizing), second-lien or high-yield (bullet/PIK), revolver (revolving credit).
• Interest: calculate on average debt balance or beginning balance per tranche; include cash-pay vs PIK (payment-in-kind) interest.
• Amortization: implement mandatory amortization rows, plus optional prepayments via cash sweep when available cash exceeds minimum cash.
• Covenants: model tests (e.g., Net Leverage = Net Debt / EBITDA, Interest Coverage = EBITDA / Cash Interest) each reporting date and flag breaches.

Example debt mechanics (illustrative FY2025 deal): initial debt $588.0m split as a term loan and a high-yield tranche; assume blended cash interest ~ 7.0%. Model amortization as roughly $68.0m principal repaid per year (combination of mandatory and cash sweep) to reach an exit net debt of $250.0m by year 5 (year-by-year: $520m, $452m, $384m, $316m, $248m).

Compute returns using the equity cash flow waterfall:

• Initial equity outlay = purchase equity check (example $252.0m).
• Interim cash distributions to equity (if any) appear as positive equity cash flows; otherwise model zero dividends.
• Exit equity value = Exit EV - Net Debt at close of exit year - transaction fees.
• IRR and MoM are calculated from the timeline of equity cash flows (negative at close, positives during hold, final positive at exit).

Worked exit example (5-year hold, illustrative): assume EBITDA grows to $176.3m by year 5 (8% CAGR) and exit multiple 8.0x → Exit EV $1,410.5m. With exit net debt $250.0m equity at exit ≈ $1,160.5m. Initial equity $252.0m → MoM ≈ 4.6x, 5-year IRR ≈ ~35.6%. Here's the quick math: equity exit / equity entry = MoM; IRR = MoM^(1/years) - 1.

What this estimate hides: interim cash generation, possible dividend recap, covenant-driven forced paydowns, variable interest, and refinancing costs - model them explicitly where they matter.

One-liner: the debt schedule is where deals live or die - model interest, amortization, and covenants with line-item precision.

Run sensitivities and present outputs clearly

Sensitivities show whether your expected returns are robust or fragile. Build clean tables that vary the two most consequential levers: exit multiple and EBITDA growth (or margin recovery).

• Set up a 3x3 or 5x5 matrix that cross-tabulates exit multiple and EBITDA CAGR over the hold period.
• Report MoM and IRR in the matrix and highlight breakeven cells where IRR falls below your target hurdle (e.g., 20% IRR).
• Include stress tests: +200 bps interest, recessioned revenue dip -15% in year 1, and a refinancing fee equal to 2-3% of outstanding debt.
• Show covenant breach scenarios and the liquidity runway (months of cash until default) under each stress case.

Example sensitivity table (illustrative, 5-year hold, exit net debt fixed at $250.0m):

Best practices when presenting outputs:

• Surface the most decision-relevant numbers: initial equity, peak net leverage, year-by-year cash interest, required minimum cash, exit equity, IRR, MoM, payback years.
• Annotate assumptions next
  

  Value-creation levers and principal risks

  
  

  You're evaluating an LBO - direct takeaway: prioritize actions that materially grow or protect EBITDA while planning for refinancing and covenant stress. Plan value creation with clear metrics, timelines, and contingency triggers so you know what to do if one lever misses.

  Levers

  
  

  Focus on a short list of high-impact moves that directly raise cash flow or valuation. That keeps implementation simple and measurable.

  Concrete levers with practical steps and expected impact:

  • EBITDA growth - Expand sales through pricing, channel mix, and focused GTM (go-to-market). Step: run a 12-24 month revenue plan with monthly KPIs; target 5-15% CAGR in typical buyouts depending on base growth.
  • Margin expansion - Cut avoidable costs, optimize SG&A, and reduce COGS via supplier renegotiation. Step: identify top 10 cost lines and target 200-500 bps improvement within 18 months; quantify savings to EBITDA and cash.
  • Capex efficiency - Shift from growth capex to maintenance, outsource non-core fixed assets, and time investments to cash cycles. Step: convert discretionary capex to KPI-linked tranches and free up 1-3% of revenue annually.
  • Working-capital release - Shorten DSO (days sales outstanding), extend DPO (days payable), and optimize inventory turns. Step: aim to reduce net working capital by 0.5-1.5% of revenue, modeling cash impact monthly.
  • Multiple expansion - Improve business quality (recurring revenues, margin profile) and prepare investor story. Step: implement governance and reporting upgrades to move exit multiple by +0.5-1.5x EV/EBITDA over the hold.
  • Add-on acquisitions - Buy complementary assets to scale quickly and capture synergies. Step: specify banker pipeline, integration playbook, and target payback within 3 years.
  
  

  Here's the quick math: if base EBITDA is $100m, a 300 bps margin uplift adds $3m EBITDA; at a 7x exit multiple that's $21m extra enterprise value before debt - small operational moves can move the needle fast.

  One-liner: pick 2-3 levers you can own and measure, then drive them relentlessly.

  Risks

  
  

  You need to name the ways the plan can fail, score them by likelihood and impact, and attach triggers. That lets you prioritize mitigations and covenant design.

  • Refinancing risk - Rising rates or tight markets can block rollovers. Consider scenarios where credit spreads widen by 200-500 bps.
  • Covenant breaches - Underperforming EBITDA or cash flow can trigger tests. Model covenant headroom and the effect of a 10-20% revenue shortfall on covenants.
  • Macro shocks - Recession or rate shocks reduce revenue and increase interest expense; stress test a -10% to -25% demand shock.
  • Integration failure - Add-on synergies not realized increases leverage duration. Score integration on people, systems, and customers; require milestone gating.
  • Revenue miss - Loss of a major customer or slower unit economics; model top-5 customer concentration and plan replacements.
  
  

  Best practice: quantify each risk to cash and covenants, not just probability. If revenue falls 15%, show the exact covenant breach date and liquidity runway - that keeps decisions factual and fast.

  One-liner: map what breaks the math, then put a price and a plan against each failure mode.

  Mitigations

  
  

  Mitigations must be specific, timebound, and testable - not vague assurances. Each mitigation should reduce either probability or impact.

  • Conservative leverage - Limit entry net debt to a sensible multiple (e.g., target 3.5-5.0x EBITDA depending on stability). Step: build a downside that shows IRR at low-case EBITDA.
  • Flexible covenants - Negotiate covenant baskets, EBITDA add-backs, and step-downs to allow operational fixes time to work. Step: require explicit covenant holiday or higher thresholds in year 1.
  • Contingency liquidity - Keep 6-12 months of cash and an undrawn revolver sized to cover worst-case cash burn. Step: set minimum liquidity trigger and replenishment plan.
  • Operational milestones - Tie management incentives to 90-day and 12-month operational KPIs (new customers, gross margin, working-capital days). Step: withhold portion of earnout if milestones miss.
  • Hedging and interest protection - Use fixed-rate tranches or caps to limit near-term rate exposure on variable debt. Step: model hedging cost vs benefit at current forward curves.
  • Exit optionality - Maintain paths: (1) trade sale, (2) IPO, (3) partial sale. Step: ensure financial reporting is public-market ready within 18 months.
  
  

  What this estimate hides: mitigations cost cash and may dilute upside - quantify trade-offs. For example, adding hedges costing 0.5-1.0% of debt lowers interest volatility but reduces free cash flow.

  One-liner: build the mitigation playbook before you sign - then rehearse it.

  Next step: You or Finance lead - create a 90-day value-creation plan with KPIs, cash triggers, and a contingency budget; draft this by Friday and assign owners for each lever (sales, ops, treasury).

  
  

  Practical modeling tips and common pitfalls

  
  

  Keep the model modular and auditable

  
  

  You're building an LBO fast but you still need to hand it to others - start by separating inputs, drivers, the three-statement engine, the debt schedule, outputs, and sensitivities into distinct tabs or sections.

  Steps to follow: create an Inputs tab with time horizon (use FY2025 as Year 0 and project five full years), a Drivers tab for growth and margin formulas, a clean Three-Statement tab that reads only from drivers/inputs, and a Debt Schedule tab that reads only from the three-statement cash flow. Keep a single Sources & Uses sheet at the front.

  Best practices: color-code inputs, label every hard link, freeze the first column for time periods, and include a version and author cell. Use named ranges for key items (EBITDA, capex, revolver capacity) so reviewers can find assumptions quickly.

  Quick one-liner: Make change control trivial - modularity saves hours.

  Reconcile cash flow to net debt every year; test the debt paydown math

  
  

  Answer this check every model: does ending Net Debt equal opening Net Debt plus net draws minus repayments plus interest accruals minus cash build? Put that reconciliation on a single line and a single cell that must be zero each year.

  Concrete steps: link Free Cash Flow to the Debt Schedule (start with EBITDA → cash taxes → capex → Δ working capital → levered free cash flow). On the Debt Schedule, model interest as either cash-paid or accrual; reconcile the two. Then compute ending Net Debt = opening debt + new debt - principal repayments - cash balance change.

  Example math to test: Opening Net Debt $200m, mandatory amortization $30m, cash sweep at 50% of excess cash ($20m), interest cash paid $18m → Ending Net Debt = $200m - $30m - $20m + net new draws (if any) + interest accrual adjustments. If the reconciliation fails, trace links back to the cash flow statement and the gross debt lines.

  Common pitfalls to check: double-counting cash sweep, confusing interest expense with cash interest, forgetting revolver draws as negative debt, and not modeling covenant-triggered mandatory repayments.

  Quick one-liner: If net-debt math doesn't close, the model isn't finished.

  Stress-test scenarios, avoid exit-multiple overfitting, and validate slowly

  
  

  Don't present a single outcome. Build base, downside, and upside cases and run sensitivity matrices for exit multiple vs. EBITDA growth. Typical sensitivity ranges: exit multiple 6.0x to 10.0x, EBITDA CAGR 0% to 10%, and interest-rate shocks of +200 bps to -100 bps.

  How to implement: create one-way tables for IRR vs exit multiple and two-way tables for IRR vs EBITDA growth. Then run a shock table where you add +200 bps to all debt coupons and reprice cash interest - show the new interest cash, covenant breaches, and required revolver draws. Also test a lower-multiple exit with the same operational plan to see if the equity IRR still meets hurdle rates.

  Avoid overfitting: document why you chose an exit multiple and tag its source (historical comps, precedent transactions, or sell-side consensus). Always show returns assuming no multiple expansion (i.e., exit multiple = entry multiple) and a scenario where multiples compress by -2.0x.

  Validation checklist: reconcile scenario inputs to the Inputs tab, run a break-even analysis for covenant thresholds, and publish a short assumptions note (one paragraph) per scenario so reviewers understand the logic without reading the whole model.

  Quick one-liner: Build fast, validate slow - speed for iteration, rigor for the record.

  Immediate next step: you (or Finance lead) build a Sources & Uses sheet, the Inputs tab for FY2025-FY2029, and a 5-year debt schedule with the reconciliation line by Friday; defintely include scenario labels and sensitivity tables.

  
  

  Final takeaway and next steps

  
  

  Direct takeaway

  
  

  You want to know if using debt can make the purchase pay for equity holders; an LBO model answers that by mapping projected cash flow against planned debt and showing the resulting equity internal rate of return (IRR) and multiple on money (MoM).

  One-liner: An LBO model quantifies whether leverage turns a purchase into a compelling equity return given realistic operational forecasts and financing terms.

  Immediate next step

  
  

  Start by building a concise Sources & Uses sheet and a high-level three-statement (income, balance sheet, cash flow) forecast for a five-year hold, using FY2025 actuals as your base year.

  • Pull FY2025 audited figures: revenue, EBITDA, capex, net working capital, tax rate.
  • Draft Sources & Uses: purchase EV, rollover equity, transaction fees, equity contribution, and initial debt tranches.
  • Set core assumptions: entry multiple (EV/EBITDA), exit multiple range, hold period, initial leverage (debt/EBITDA), and target IRR.
  • Build a simple 5-year P&L: revenue growth drivers, margin bridges, EBITDA, D&A, and taxes.
  • Make the cash flow: convert EBITDA to levered free cash flow after capex, working-capital changes, interest, mandatory amortization.
  • Create a debt schedule: opening balances, interest (cash vs. paid-in-kind), amortization, revolver usage, and cash-sweep logic.
  • Run sensitivities: exit multiple vs. terminal EBITDA and base vs. downside revenue paths.
  
  

  Best practice: document the FY2025 source for every baseline number so reviewers can verify inputs quickly.

  One-liner: Build the Sources & Uses and a five-year, FY2026-FY2030 forecast off FY2025 actuals first.

  Owner and deadline

  
  

  Owner: you (deal lead) or Finance lead - draft the initial model and sensitivities by Friday, Dec 5, 2025. Defintely include a debt schedule.

  • Deliverable 1: Sources & Uses worksheet (cells for EV, fees, rollover, equity, each debt tranche).
  • Deliverable 2: High-level three-statement model for years FY2026-FY2030 linked to FY2025 actuals.
  • Deliverable 3: Debt schedule with interest detail, amortization, revolver rules, and covenant tests per year.
  • Deliverable 4: Sensitivity matrix for exit multiple and EBITDA growth, and a small scenario pack (base/down/up).
  • Deliverable 5: One-page dashboard showing purchase IRR, MoM, peak leverage, and liquidity runway.
  
  

  Quick guidance on ownership: Finance drafts the model, deal lead sets the strategic assumptions, and legal/treasury feed debt covenants and fees.

  One-liner: Finance: draft the Sources & Uses and a high-level 3-statement forecast for years 1-5 by Dec 5, 2025.

  
  

  

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