Operating company LBO
Outputs below are real: the notebook runs against the
opcopack's benchmark model, which CFDL validates against an independent reference. To run it yourself, see the Python SDK guide.
A five-year services buyout: revenue/opex growth, DSO/DPO/DIO working capital, %-of-revenue capex, a term loan (IO then amortizing with a balloon), cash taxes, and an exit on trailing-twelve EBITDA.
This notebook uses the benchmark model that CFDL validates against an independent reference to the penny (see benchmarks/).
from pathlib import Path
import cfdl_sdk
# This notebook reads a benchmark model and the pack definitions, both of which
# live in the repository, so locate its root. Searching a bounded set of
# ancestors means running from outside a checkout fails with an explanation
# rather than looping forever at the filesystem root.
def repo_root() -> Path:
here = Path.cwd().resolve()
for candidate in (here, *here.parents):
if (candidate / "Cargo.toml").exists() and (candidate / "packs").is_dir():
return candidate
raise RuntimeError(
"No CFDL checkout found above "
f"{here}. This notebook loads a model from benchmarks/ and pack "
"definitions from packs/, so it needs to run inside a clone of "
"https://github.com/bizarc/cfdl."
)
ROOT = repo_root()
PACKS = ROOT / "packs"Compile
Compile the model directory to IR.
model_dir = ROOT / "benchmarks/opco/lbo_buyout"
model = cfdl_sdk.compile(model_dir, packs_dir=PACKS)
print("streams:", len(model.ir["streams"]))streams: 10
Run
Run with the benchmark's configuration and apply the opco pack's domain metrics.
results = model.run(
config=str(model_dir / "run.json"),
pack="opco",
)
print("status:", results.status, "| warnings:", len(results.warnings))status: ok | warnings: 0
Cash flows
The engine returns per-period signed cash flows; cashflows() gives a wide DataFrame indexed by period.
cf = results.cashflows()
print('shape:', cf.shape)
cf.head()shape: (60, 11)
model.net_cash_flow stream.opco.acquisition.price \
period
2026-01 -1.349413e+07 -33600000.0
2026-02 1.540042e+05 0.0
2026-03 1.558667e+05 0.0
2026-04 1.577407e+05 0.0
2026-05 1.596264e+05 0.0
stream.opco.capex stream.opco.debt.interest \
period
2026-01 -30000.000000 -148750.0
2026-02 -30146.026517 -148750.0
2026-03 -30292.763825 -148750.0
2026-04 -30440.215385 -148750.0
2026-05 -30588.384673 -148750.0
stream.opco.debt.principal stream.opco.debt.proceeds \
period
2026-01 0.0 21000000.0
2026-02 0.0 0.0
2026-03 0.0 0.0
2026-04 0.0 0.0
2026-05 0.0 0.0
stream.opco.exit.value stream.opco.opex.recurring \
period
2026-01 0.0 -650000.000000
2026-02 0.0 -652127.930858
2026-03 0.0 -654262.828009
2026-04 0.0 -656404.714257
2026-05 0.0 -658553.612483
stream.opco.revenue.recurring stream.opco.taxes \
period
2026-01 1.000000e+06 -13325.000000
2026-02 1.004868e+06 -14037.301124
2026-03 1.009759e+06 -14753.951204
2026-04 1.014674e+06 -15474.974297
2026-05 1.019613e+06 -16200.394584
stream.opco.working_capital.adjustment
period
2026-01 -1.052055e+06
2026-02 -5.802120e+03
2026-03 -5.832592e+03
2026-04 -5.863220e+03
2026-05 -5.894004e+03
# Requires the [viz] extra (pip install cfdl-sdk[viz]).
results.plot.cumulative()<Axes: xlabel='period', ylabel='cumulative amount'>
Metrics
Core metrics (NPV/IRR/MOIC/...) plus the pack's domain metrics, with their source labelled.
results.metrics_frame() metric value currency \
0 domain.opco.capex 2.084574e+06 USD
1 domain.opco.debt_service 2.828325e+07 USD
2 domain.opco.ebitda 2.646942e+07 USD
3 domain.opco.ebitda_margin 3.809330e-01 None
4 domain.opco.fcf 2.173644e+07 USD
5 domain.opco.fcf_to_debt_service 7.685270e-01 None
6 domain.opco.revenue 6.948579e+07 USD
7 domain.opco.taxes 2.648405e+06 USD
8 domain.opco.working_capital -0.000000e+00 USD
9 entity.operating.target.total 3.335678e+07 USD
10 model.irr 3.139250e-01 None
11 model.moic 3.467004e+00 None
12 model.npv 1.413443e+07 USD
13 model.payback_periods 5.900000e+01 None
14 model.payback_years 4.916667e+00 None
15 model.total 3.335678e+07 USD
16 model.wal_years 4.708338e+00 None
17 run.annual_discount_rate 1.200000e-01 None
18 run.periods_per_year 1.200000e+01 None
19 stream.opco.acquisition.price.total -3.360000e+07 USD
20 stream.opco.capex.total -2.084574e+06 USD
21 stream.opco.debt.interest.total -7.283247e+06 USD
22 stream.opco.debt.principal.total -2.100000e+07 USD
23 stream.opco.debt.proceeds.total 2.100000e+07 USD
24 stream.opco.exit.value.total 5.250358e+07 USD
25 stream.opco.opex.recurring.total -4.301637e+07 USD
26 stream.opco.revenue.recurring.total 6.948579e+07 USD
27 stream.opco.taxes.total -2.648405e+06 USD
28 stream.opco.working_capital.adjustment.total 0.000000e+00 USD
source
0 domain:opco
1 domain:opco
2 domain:opco
3 domain:opco
4 domain:opco
5 domain:opco
6 domain:opco
7 domain:opco
8 domain:opco
9 core
10 core
11 core
12 core
13 core
14 core
15 core
16 core
17 core
18 core
19 core
20 core
21 core
22 core
23 core
24 core
25 core
26 core
27 core
28 core
What-if
Report the free-cash-flow-to-debt-service coverage and MOIC.
m = results.metrics()
print("FCF / debt service:", round(m["domain.opco.fcf_to_debt_service"], 3))
print("MOIC:", round(m["model.moic"], 3))FCF / debt service: 0.769
MOIC: 3.467