• Calculator worksheet

LBO Returns Attribution Calculator

Decompose leveraged buyout returns into EBITDA growth, multiple change, and debt paydown.

Inputs

Live

Operating Assumptions

Entry EBITDA

Earnings before interest, taxes, depreciation, and amortization.

Exit EBITDA

Earnings before interest, taxes, depreciation, and amortization.

Entry Multiple

Exit Multiple

The valuation multiple assumed when selling or valuing the business at the end of a forecast.

Capital Structure

Entry Debt

Exit Debt

Hold Period

yrs

Entry Equity = Entry EV − Entry Debt = $320

Exit Equity = Exit EV − Exit Debt = $1,247

Variables and terms

Entry EBITDA

Earnings before interest, taxes, depreciation, and amortization.

Exit EBITDA

Earnings before interest, taxes, depreciation, and amortization.

Entry Multiple

An input assumption used by this calculator. Change it to see how the result moves.

Exit Multiple

The valuation multiple assumed when selling or valuing the business at the end of a forecast.

Entry Debt

An input assumption used by this calculator. Change it to see how the result moves.

Exit Debt

An input assumption used by this calculator. Change it to see how the result moves.

Hold Period

The time period used to place the assumption in the model.

How to read this calculator

Read EBITDA Growth, Multiple Change, and Deleveraging as the bridge from Entry Equity to Exit Equity. MoM divides Exit Equity by Entry Equity, while IRR annualizes that MoM over the Hold Period.

MoM

3.9x

IRR

The annualized return rate that makes the present value of cash inflows and outflows equal zero.

31.3%

Total Value Created

$927

EBITDA Growth

$375

40.5% of total

Multiple Change

$147

15.9% of total

Deleveraging

$404

43.6% of total

Data view

Attribution Step	Value	Share of Total
Entry Equity	$320	—
EBITDA Growth	$375	40.5%
Multiple Change	$147	15.9%
Deleveraging	$404	43.6%
Exit Equity	$1,247	—

Methodology