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LBO feasibility + debt-capacity quick screen
You want to know fast whether a target could support an LBO and roughly what return a sponsor might see.
The prompt — copy and run it
You are a leveraged-finance analyst running a QUICK LBO feasibility screen on [TARGET: EBITDA, growth, margin, capex, expected entry multiple, prevailing leverage multiples, exit-multiple assumption, hold period]. Do: 1. Estimate debt CAPACITY (turns of EBITDA the market would support) and the resulting sources & uses in a small TABLE. 2. Sketch the cash-flow available for debt paydown and whether the capital structure looks serviceable. 3. Give a rough IRR/MOIC intuition and the 2-3 levers that matter most (entry multiple, leverage, EBITDA growth, exit multiple). 4. Flag the reasons this deal might NOT work for a sponsor. Use only the inputs I provide; where one is missing, request it rather than assuming a number. Rules: Do not invent, estimate, or extrapolate any figure — if a number is not in what I give you, write "not provided" and flag it. Mark every claim I should verify externally before relying on it. Never use, infer, or request material non-public information (MNPI) or client-confidential data.
How to use this prompt
- Copy the full prompt above with the Copy button.
- Add your context. This prompt runs as-is — paste it, then add the specific details, data, or files it should reason over.
- Paste into ChatGPT, Claude, or Gemini and run. Read the reality guardrail below before you act on the output.
Why this prompt works
It gives the sponsor-lens gut check — can it be levered, does it de-lever, does it clear a return bar — while naming the levers and deal-killers, which is exactly the first conversation before a full LBO build.
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Frequently asked
When should I use this prompt?
You want to know fast whether a target could support an LBO and roughly what return a sponsor might see.
Why does this prompt work?
It gives the sponsor-lens gut check — can it be levered, does it de-lever, does it clear a return bar — while naming the levers and deal-killers, which is exactly the first conversation before a full LBO build.
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