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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.

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.