REPE Starter Kit - Build the LBO Model in Excel - Leveraged Breakdowns

This topic has 1 reply, 2 voices, and was last updated 4 years, 1 month ago by Lev.

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September 16, 2020 at 6:48 pm #23995

trace
Participant

Hi Lev,

For the REPE Starter Kit’s Build the LBO Model in Excel lesson, can I understand what is the rationale for modelling year 0 to year 6? I see that the holding period is 5 years and presume we should model from year 0 to year 5? Kindly advise. Thanks!

Cheers,

Trace

September 29, 2020 at 1:22 am #24026

Lev
Keymaster

REPE investors generally capitalize the NTM NOI, or next twelve months Net Operating Income. So if my property sells in year 5, I need to know what my NOI will be in year 6 to have the NTM NOI at exit in year 5. Make sense?
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