Financial Model Libraries x AI
Links to financial models, AI systems and workbooks for financial diligence.
Leveraged Buy Out Models
LBO with Dividend Recap and PIK Debt
This model builds is a 100% equity buyout structured with PIK interest debt alongside a debt recap facility. Midway through the hold period, the model raises recap debt and issues a dividend to shareholders, calculating the incremental IRR and MoM created by the transaction. It incorporates a driver-based forecast that connects revenue and cost assumptions directly to cash flow generation. The structure flows through interest, taxes, debt amortization, recap distributions, and exit proceeds to provide a comprehensive view of equity value creation.
This model incorporates segment-level drivers such as unit volumes, pricing, and attach rates, flowing these into revenue, EBITDA, and cash generation. The balance sheet is simplified, with debt, cash, and partial rollover equity as the key elements, and PIK instruments can be layered in where appropriate. This version is designed for scenario analysis, showing how operating assumptions and rollover structures shift returns, and is best suited for diligence once a deal has passed the initial screen.
This model is built to test deal feasibility quickly. It relies on an abridged balance sheet, assumes a full equity buyout, and keeps the forecast clean with no operating drivers or closing balance sheet. The output is a straightforward view of IRR, MoM, and leverage capacity, based purely on entry and exit multiples and basic cash flow dynamics. Its role is to serve as the first filter — a fast way to determine if a transaction warrants deeper work.
LBO Financial Model (with Custom GPT)
A one-page Excel LBO model paired with a custom GPT trained on the model documentation. The model calculates IRR, MoM, return sensitivity and debt coverage metrics from a set of operating and transaction assumptions.
Screenshot any section of the LBO model and send it to the GPT for debugging. It helps resolve issues like circular references, broken roll-forwards, or mismatched Sources & Uses. It can move step-by-step through the model (e.g., “Walk me through the second step… What comes next?”)
LBO with Add-On Acquisition and Convertible Equity
This model layers in a convertible preferred investment alongside a revolver to finance add-on acquisitions. It incorporates management options and convertible equity, modeling both the PIK accrual of the preferred and the potential conversion into common shares. Midway through the hold, the model executes an add-on acquisition funded with debt, capturing the incremental impact of higher-margin revenue on the combined entity.
Standard LBO with Closing Balance Sheet
This model delivers the full closing balance sheet and a normalized capital structure for a 100% equity buyout. It refinances existing debt, applies financing fees, sets minimum cash, and then flows cleanly through interest, taxes, debt paydown, and exit value.
This financial model can be used with AI tools such as Shortcut AI. Financial model sourced from the Yale SOM designed to build and analyze an operating case for a business. It takes raw historical financials (e.g., from QuickBooks) and structures them into a recurring revenue build, full income statement, and linked financial outputs so you can test different scenarios (Base, Upside, Downside). The goal is to give a clear, standardized framework for understanding how revenue drivers, costs, and assumptions flow through to financial performance and valuation.
LBO with Add-On Acquisition and Convertible Equity
This model layers in a convertible preferred investment alongside a revolver to finance add-on acquisitions. It incorporates management options and convertible equity, modeling both the PIK accrual of the preferred and the potential conversion into common shares. Midway through the hold, the model executes an add-on acquisition funded with debt, capturing the incremental impact of higher-margin revenue on the combined entity.