Paper LBO practice generator
The whiteboard LBO an interviewer walks you through: lever an entry, grow EBITDA, sweep free cash flow to debt, exit at a multiple, and back into the sponsor's returns. Generate a fresh scenario, work it on paper, then check every line.
How the paper LBO works
Every scenario keeps the numbers clean so you can do it in your head. Start with entry enterprise value (EBITDA × the entry multiple), split it into debt and sponsor equity, then roll it forward: grow EBITDA over the hold, pay down debt with cumulative free cash flow, and mark the business to an exit multiple. Sponsor equity at exit is exit EV minus remaining debt — divide by the equity you put in for MoM, then annualize for an approximate IRR.
How to practice
Hit New scenario, then solve it out loud on paper before you reveal anything — narrate each step the way you would across the table. Reveal the worked solution and reconcile line by line: if your MoM or IRR is off, the mismatch is almost always in the debt paydown or the exit equity. When the mechanics are automatic, move to the timed drill where you enter the answers against the clock.
Knowing the formula isn't the same as saying it under pressure.
WACC Buddy drills the paper LBO — and every other IB technical — until the answers come out clean in the room. 2,000+ human-reviewed questions, spaced-repetition scheduled.
free to start · 10 reps a day · no credit card
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