Associate Interview - Investment Banking
The test comprised of building out a LBO model with IRR & MOIC calculations. The test had to be completed within 90 mins, a template was provided. Post the test I met with Michael Baldock, one of the senior members.
No feedback was provided at all, only update I had was via the recruiter who only knew that they hadn't made a decision up until the point they made an offer to another candidate.
The modeling test may be a little complicated for some. The test required candidates to create pro-forma financials for the company and build a dynamic debt schedule with 2 tranches of debt, only 1 tranche being annually amortized.
Post creating the pro-forma and debt schedule, the candidate was required to calculate the IRR. Also had to run a sensitivity analysis to show IRR returns under different growth rates and exit multiple assumptions.
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