Sometimes you just have a bad day and there is absolutely nothing you can do about it. Today was such day where I froze on a modelling test
Lets be honest it was a very very complex assignment and the recommended times was about 6 hours. And even on a good day it would have been challenging.
But the end product which I put for was WAYYY below what I am capable of. I got stuck in a rut and was not able to recover.
Ill be honest here. If the product I came up with was put forward to me I would have rejected the guy there and then. Infact I would have wondered how the hell did this guy end up with a banking gig anyway. (though the modelling here was vastly different from what i do for work)
The sad part is that I had had 2 rounds of interviews with 4 people before this and they had all went well. Infact with one of them it went so good that we were chatting for 10-15 minutes at the end of the interview like old buddies about random things like golf, the best steak house etc etc. This is why I was called for the final big modelling test. And the shame is that even if had turned in a somewhat decent product I am sure the gig was mine.
So would you guys suggest that I take it on the chin and move on because there is no hope.
Or should I just send a message as early as possible trying to explain myself and making an excuse. Mght come across as pathethic but desperate times desperate measure?
What should I do?
best just to leave it alone. such is life, learn and move on.
thats a great statement.
If you have a solid resume (good brand, good schools, and you answer theoretical finance questions correctly and astutely) i wouldn't consider it a bombed interview...no one creates these models in 5 hrs or anything like that in PE anyway..but if you didn't ace the other areas of the interview, clearly fit is not an issue which is really important to pe funds as well given the size and lower attrition rates, then i would say you have no chance..but i wouldn't throw in the towel just yet..but i would kick myself in the ass if i were you and tell myself i'm a fucking moron for not preparing simple modelling tests that are endemic to any interview and that which you really should know like the back of your hand..3 statement models never change..unless GAAP changes but even then the basic structure of the model will always remain constant...and you should know that..
good luck
If The Office has taught me anything, I would send them a gift basket as a thank you, and when they reject me, I would personally drive to their office, interrupt their meetings and demand for my gift basket back.
just curious..but how badly can you fuck up an lbo model...they're all pretty straightforward, other than modelling out the I/S...
we had to make 3 statement operating model. then a dcf valuation. and then an lbo model. in 5 hours. All that was handed was a blank excel file and 3 yearly annual statements and the recent quarterly staement of an obscure company.
I was a bit rusty and havent dealt with this for a while either. The test was kinda out of the blue.
Anyways I accept its clearly my fault. As someone who has a year of experience and got this far I should have been prepared for this
Nothing you can do now man. You are almost certainly dinged and as you pointed out, you probably should be. It is unfortunate but how the industry works.
Importantly, get over being sad about it and learn from this mistake to absolutely drill these tests until you know it cold. It should not be that difficult to do that before your next interview.
Must come across as really random and weird as its on a forum but just wanted to say thanks as this was certainly a good kick in the back side i needed to stop me from feeling sorry for myself.
Yeah.....to echo what socola2003 mentioned and given the information you have stated about the test, it does not appear to be that crazy in terms of completing a significant portion (or entirety) for the model (assumption being that you came from a role that involved a good amount of modeling and/or you practiced modeling on your own through many different reasons). I guess it would not hurt to send a note, but I say keep progressing on to next interview until you have an offer in hand......
My issue was that I am a year out of college and went straight to energy banking. The models we do are very different from a standard one. And yea I didnt really practise modelling as such. Just had a good look and I did kill the interviews pretty much so who knows overconfidence maybe. Lack of research on the process more like though.
Anyways its done. Havent gotten back yet whereas after the first round they got back immediately (literally an hour. I was kinda taken aback myself)
But good learning lesson for the future. A humbling experience and something that will make me re evaluate things
How long did they give you before informing you about the modelling test?
Take it as a lesson and prep harder for the next opportunity. I'd say you are most likely dinged so no use in wasting time overthinking. Just use it as motivation to do better the next time.
On a side note, the test you outlined does not seem overly complex/atypical to what you will find at most funds. Sounds like you need to spend the next few weekends cranking through practice modeling tests.
agreedl
any source/website for free modelling tests?
or any reasonably priced ones
I can relate to you. Few years ago, interviewed a year and a half into banking from a non-core/M&A IBD group - did very well on qualitative/fit, but bombed on technical. Studied up and aced the interviews a year later.
Having spent some time in the buyside, i wouldn't say technical skill is the #1 most important quality, but it's important to be able to do quick calcs and have a fundamental understanding of modeling..but more for communication purposes with colleagues. You rarely build full 3 statement models unless you're deep in a deal. In fact, having a firm grasp on legal negotiations, tax structuring, purchase price adjustments, structuring mgmt equity programs..is infinitely more important than building a 3 statement model...I don't really understand the industry's obsession with this.
I used two sources - you should be set with these...and are free for a good conceptual understanding: streetofwalls lbo example LBO template (a bit over the top/complex): macabus model template
Had the same experience as you. I am working in an infrastructure finance team, where I have been building project finance models. I went for modeling test for an M&A role - even the test was similar to yours, three statements, DCF and LBO model. Totally flunked the test and I am thinking whether I shall do anything to rescue.
Don’t to be an ass, but petty straightforward of a model test for a PE firm. Id just get it down because almost every firm will ask something similar.
How did it go? Had a test the other day and fixed some cell references, added instead of subtracting and wrong links. But still got the right outputs.
I did the same thing earlier this semester. I had multiple interviews that went quite well at firm X and totally bombed the LBO modeling test. TL;DR Learn from your mistakes and move on.
I am taking six engineering courses to complete a double major in one extra semester. I had three super days over five days and I had been dealing with some health issues. I had a particularly large amount of school work to do around the same time but I managed to prepare diligently for all interviews and do well in the first two interviews.
The third interview was an LBO modeling exam and I absolutely bombed it. I mean I totally froze and it was terrible. At that point, I had been working way too hard in spite of my health issues and I definitely should have taken some time off to figure it out.
Two things happened after that:
1. I got dinged immediately
2. I learned that "health is wealth" and now I can absolutely crush an LBO model.
I learned a lot from the experience and I have since moved on. I also still got a job in PE.
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