00Amortiq — LBO Modeling

Amortiq

Where EntrymeetsExit

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01The Mechanism

Debt does the heavy lifting. Equity captures the upside.

A leveraged buyout is how private equity firms buy companies without paying for them themselves. Most of the purchase price is borrowed. The company being acquired is what pays that debt back, using its own cash flows over the years the firm holds it. By the time the firm sells, the debt has shrunk, the company is often worth more, and the equity the firm actually put in has grown into a return far larger than the business itself grew. That's the entire mechanism. Debt does the heavy lifting. Equity captures the upside.

Deal Capitalization
Year 0 / 5
$1.0B EV
Debt82%
18%Equity
Debt vs. EBITDA
$M
Y0Y1Y2Y3Y4Y5
MOIC
1.00x
IRR
0.0%
Equity
$180M
02The Arc of a Deal

Three stages. Five moving parts.

Stage 01
T-0
Entry

The deal is financed and the company changes hands.

Sources of Capital
$1.0B
Stage 02
Y1—Y5
Hold Period

Debt is paid down, cash flows are reinvested, the business runs.

Debt Balance
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Y0Y1Y2Y3Y4Y5
Stage 03
T+5
Exit

The company is sold, debt is repaid, and what remains belongs to the equity holder.

Exit Waterfall
EV · $1400M
Sponsor Equity
$1260M · 90%
Debt Repaid
$140M · 10%
Sources and Uses

Where the purchase price comes from, and where it goes.

Debt Schedule

How the debt shrinks year by year.

Projected Financials

Revenue, cash flow, and earnings across the hold period.

Exit Value

What the company is worth when it's sold.

Returns
MOIC
2.8x
IRR
24%

What the equity holder actually walks away with, measured in IRR and MOIC.

03The Workflow

Four steps to a complete deal.

  1. 01

    Enter the target company's financials

    Revenue, EBITDA, capex, and working capital.

  2. 02

    Set your deal assumptions

    Entry multiple, exit multiple, hold period, leverage, interest rate, and tax rate.

  3. 03

    Run the model

    Amortiq builds the full deal in one pass.

  4. 04

    Review the results

    Sources and uses, the debt schedule, projected financials, exit value, returns, and a sensitivity table showing how outcomes shift across different assumptions.

04 · Interlude

The story ends here.

The numbers begin below.

Run Your Own Deal
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05The Product

Run Your Own Deal.

Enter the target's financials, set your deal structure, and Amortiq builds the entire model in one pass — sources, debt, financials, exit, returns, and sensitivity.

Group A
Target Company
Group B
Deal Structure
Debt / Equity Split60%/40%
All Equity95% Debt