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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

  1. Copy the full prompt above with the Copy button.
  2. Add your context. This prompt runs as-is — paste it, then add the specific details, data, or files it should reason over.
  3. 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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Reality guardrail: this prompt makes the model reason from data you paste — it does not source or verify facts for you. Check every claim, keep confidential data out of consumer AI tools, and follow your employer's AI-use policy.

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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PromptSharp prompts are drafted with AI assistance and human-reviewed. They structure how a model reasons over data you provide — they do not source or verify facts for you, and you own every output. Nothing here is financial, legal, tax, or investment advice. Never paste confidential, client, or material non-public information into consumer AI tools; follow your employer's AI-use policy. © 2026 PromptSharp.