Question
The LBO Model Template enhances business strategy by providing a structured framework to assess the potential return on investment (ROI) from a leveraged buyout (LBO). It helps in identifying the Internal Rate of Return (IRR) of a company purchase, which is a key metric in investment decisions. By using this model, businesses can evaluate if a purchase is worth it, thus aiding in strategic decision-making. It also uses circular formulas, ensuring a comprehensive and accurate calculation of returns.
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Before we get into details, you must enable the "Iterative calculation" option in Excel or Google Sheets to ensure the model works correctly. The LBO Model Template uses circular formulas and won't work properly without this setting activated. Instructions for this are available in the "Instructions" tab, where you'll also find additional information that can help with any questions about the model.
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