Course · Act I: The Buyout · Act I case study
Leveraged buyout: a worked case
Case: price Biscuit Barrel, balance sources and uses, run the five-year plan to the exit, then work out MOIC and IRR, with a lower exit multiple and with no debt at all.
Key terms
- Leveraged buyout (LBO)
- Buying a company mostly with borrowed money that the company itself must repay. The equity is small, so it gains and loses fast.
“The Buyout” is part of the full course: 8 puzzles on leveraged buyout: a worked case. Biscuit Barrel is fictional; the frauds in the notes are real, settled cases. Try this act’s free chapter, “What Does It Cost?”, first.
“The Buyout” is in Act I: The Buyout. 8 puzzles, unlimited retries.
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