Industry LBO execution

How to model an LBO for UK Vertical Software assets

Direct answer

For UK Vertical Software buyouts, the LBO model should anchor on arr growth net of churn and explicitly stress platform migration delays plus legacy contract churn. Underwriting quality comes from converting operating assumptions into cash conversion cases, then testing debt service under downside, base, and control-upside scenarios.

Core risk factors

  • Platform migration delays
  • Legacy contract churn
  • Implementation cost overruns

Execution baseline

Metric to anchor underwriting: ARR growth net of churn

Modelling focus: Migration pace and margin trajectory

Move from theory to execution

This guide is an orientation layer. The GCPE programme runs these judgments inside live data-room workflows with partner-level feedback.

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