This Q&A podcast focuses on Leveraged Buyouts (LBOs) and financial modeling. The instructor first recaps the previous session's LBO framework, then guides participants through a simplified LBO model ("LBO Challenge"), explaining concepts like sources and uses of funds, debt schedules, and IRR calculations. The second half involves a more complex LBO model ("Columbia LBO"), demonstrating the use of different debt instruments (senior, subordinated, mezzanine debt with payment-in-kind features), and the importance of iterative calculations in financial modeling. Specific examples of debt structures and their implications for returns are provided. The session concludes with instructions for completing the Columbia LBO model independently and offers optional follow-up sessions for troubleshooting.
