The Mechanics of the Mosaic LBO


The Mechanics of the Mosaic LBO

Transaction models are comprised of six core calculation schedules spanning three distinct stages of a deal: (1) the transaction entry / or set up, (2) the investment hold period, and (3) the exit & returns.

This article is a technical resource for Mosaic users interested in understanding the purpose of each schedule and how they are connected to one another.

The Mosaic platform includes several “special situations” transaction elements that complicate deal modeling, but all flow through the six core schedules detailed below. By understanding these schedules deeply and their relationships with one another, you can confidently add further special situations to your Excel models and rapidly identify modeling errors caused by partially implemented transaction concepts (i.e., those that do not flow through each of the interrelated schedules).

The Six Core Calculation Schedules of an LBO

Click on the links below to view an article on the purpose and mechanics behind each schedule.

Entry / Set-up

1. Sources & Uses

Hold Period

2. Operating Model

3. Free Cash Flow Schedule

4. Debt Schedule

5. Tax Schedule

Exit & Returns

6. Exit & Returns