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Erudite AfricaCenter of Excellence
← Leveraged Buyout (LBO) Modeling

Building the model: sources and uses to cash sweep

Module 02 / 5 · 70 min

Build Sululta Dairy's LBO model step by step: sources and uses, a nominal birr operating model, free cash flow, a debt schedule with a cash sweep, and the interest circularity that links them.

In this module you will learn to

  • Lay out an LBO model so that every number flows from one assumptions sheet
  • Build a sources and uses table that balances, including fees and minimum cash
  • Project revenue, EBITDA and free cash flow in nominal birr with explicit inflation and working capital assumptions
  • Build a debt schedule with mandatory amortization and a cash sweep, and handle interest circularity safely

Built on

  • Erudite Africa training module: Ethiopian Context, topic 3.b Leveraged Buyout (LBO) Modeling, Levels 1 and 2 (October 2026)
  • NBE Directives SBB/87/2024, SBB/92/2024, SBB/95/2025, NBE/INT/13/2026, FXD/01/2024 and FXD/04/2026, and NBE Monetary Policy Committee release No. 7 (July 2026)
  • Investment Proclamation No. 1180/2020, Investment Regulation No. 474/2020 and Ethiopian Investment Board Directive No. 1082/2025
  • Income Tax Proclamation No. 979/2016 as amended by No. 1395/2025, and Ministry of Finance Transfer Pricing Directive No. 981/2024
  • Ethiopia's Commercial Code and trade competition law, described without article references pending confirmation of the official texts

Examples and companies are fictional. Bank practices are shown as typical Ethiopian practice, not as any one bank's policy. Always apply your own institution's approved policy and the current NBE directives.