LBO Model – Debt Schedules & Interest Expense Tutorial

In this tutorial, we walk through Silver Lake’s $24 billion leveraged buyout of Dell and explain the tasks you might have to complete if you were to analyze this deal as part of a case study in a private equity interview.

In Part 3 of the case study, we walk you through how to create the debt schedules for the company, handle repayments of existing assumed debt, and calculate mandatory and optional repayments each year.

Then, we show you how to link the debt schedules to the Balance Sheet and Cash Flow Statement and how to build in the option for circular references and average debt balances when calculating and linking net interest expense at the end.