
Industry
Investment Banking, Private Equity
Use Case
Financial Modeling
The Problem
You have a live LBO model and summary financials. The deal team needs an exit proceeds waterfall showing exactly how debt gets paid down at exit, in the right order, linked to the model, and ready for the IC deck. Building it manually means writing the distribution logic from scratch, sequencing each debt tranche correctly, and cross-checking every line against the model's debt schedule before a senior banker reviews it.
The Solution
You describe what you need to Tracelight in plain English. It reads the existing LBO structure, builds the exit proceeds waterfall directly in the model, and generates a diagram with a validation summary so you can sense-check the logic before it goes to anyone senior.
Step 1: Build the Exit Proceeds Waterfall
You tell Tracelight to build a debt paydown waterfall for the LBO exit. It reads the model's debt schedule and exit assumptions, then appends the waterfall directly below the existing LBO model - exactly where a junior analyst would place it. Each tranche is sequenced correctly, with proceeds distributed according to the financial model's capital structure.
Step 2: Validate the Structure
Tracelight produces a summary diagram alongside the waterfall, showing how proceeds flow through each layer of the capital structure and confirming that the logic validates. You can review the distribution mechanics at a glance before sharing the output.
The Result
A fully structured exit proceeds waterfall, positioned correctly in the model and ready for review, built in minutes rather than the better part of an afternoon. Investment banking teams using Tracelight on LBO workflows have reduced scenario case additions from around one hour to under ten minutes.
Frequently Asked Questions
Q: Can AI help me build a market sizing model in Excel?
A: Yes. Tracelight reads your existing LBO financial model and builds an exit proceeds waterfall directly in your spreadsheet, sequencing debt tranches correctly and validating the distribution logic, all from a plain-English prompt.
How does AI for financial modelling handle LBO exit analysis?
A: Tracelight reads the capital structure from your existing model, applies the distribution waterfall logic, and appends the output in the correct position within the workbook. It also generates a validation summary so you can confirm the mechanics before the model goes to review
Q: What LBO tasks can Tracelight automate in Excel?
A: Tracelight can build debt paydown waterfalls, add returns sensitivity cases, and extend or restructure LBO models using natural language prompts, working directly inside your existing Excel workbook without requiring a new tool or workflow.
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