What Is A Sensitivity Table?

Austin Anderson

Reviewed by

Austin Anderson WSO Editorial Board

Expertise:Consulting | Other

In investment banking andprivate equity, sensitivity tables are used to assess the likely impact of changes in specific variables on the outcome of a merger,LBOor other corporate action. Some examples are:

  • Merger Model- how is accretion / dilution affected?
  • DCFValuation- what happens if TV or discount rate change?
  • LBOModel- how isIRRaffected if leverage and/or purchase price changes?

To learn more about this concept and become a master at LBO modeling, you should check out our LBO Modeling Course.Learn more here.

Module 1: Introduction

Module 2: LBO The Big Picture

Module 3: Valuation and Transaction Assumptions

Module 4: Sources and Uses: The Theory

Module 5: Sources and Uses: Application to Nike Case

Module 6: P&L Projections & LBO Adjustments

Module 7: Debt Schedule

Module 8: Balance Sheet and Adjustments

Module 9: Taxes

Module 10: Exit, Returns, & Sensitivity Analysis

Bonus Module A) Purchase Price Accounting

Bonus Module B) Dividend Recap

Bonus Module C) Add-on Acquisition Build

Learn More Here

To learn more about this concept and become a master at DCF modeling, you should check out our DCF Modeling Course.Learn more here.

Learn More Here

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Austin Andersonis a member ofWSO Editorial Boardwhich helps ensure the accuracy of content across top articles on Wall Street Oasis. Austin has been working with Ernst & Young for over four years, starting as a senior consultant before being promoted to a manager. At EY, he focuses on strategy, process and operations improvement, and business transformation consulting services focused on health provider, payer, and public health organizations. He received his BS and MBA from the University of Michigan This content was originally created by memberWallStreetOasis.comand has evolved with the help of our mentors.

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