I have a 1 hour LBO model test coming up. I have practiced using online courses/tests but does anybody have experience doing a 1 hour LBO test? What details are usually provided and how complex is it expected to be? TIA!

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Can usually skip all the non crucial pieces like balance sheet, full cash flow statement, WC schedule. So just go S&U -> income statement -> abbreviated cash flow -> debt/interest -> returns analysis

Shouldn’t take you more than 30 min which leaves plenty of time to double check and think about the deal strategically

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Typically not a full CIM for one hour model test. Could send you a pdf or an excel with the financials (historicals), yes the crucial pieces will be there.

Reiterate the other comments. A one hour test will have a template and some blanks for sensitivities but not a full BS / CFS. Super easy, just brush up on how you would model out projections in the absence of detail (inventory days, backing into an ability to pay to achieve x IRR, etc)

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Question on this, would this be using a goal seek function for example to input an IRR to work back to what total debt or revenue growth might lead to that IRR? Or are you picturing something else when you say “ability to pay”

Can anyone share a good online resource for LBO practice material?

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Appreciate the help

In the OP’s post, it is not clear what kind of position they are applying for but for this type of position, do companies typically require IB experience or MBA? If you have neither and have an accounting background, what’s the easiest way to make the transition?

given the season, it is likely an investment banking analyst preparing for PE interviews. Accounting straight to PE seems rare, but would go for an MBA and then recruit for IBD or PE after, hopefully from a T7 school.

Also curious your background, region, and target fund size OP

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