Hi all,
Doing a take-home case study and after two days, my model's a mess.. Balance sheet way out of whack with Assets adding up to several billion less than L&E.
Have a bunch of loans disclosed in the filings, but just total size, maturity, and interest rates, with no details on amortization schedules, and I fear this may be the major hole in the whole thing. What's the best way to approach this?
Thanks in advance for your help.
| +28 | Would you work at this distressed fund? | 6 | 2d |
| +27 | How much of success in this career is just luck | 1 | 1d |
| +22 | Choosing a Seat in an AI World | 12 | 2h |
| +17 | At what point is it no longer luck | 6 | 7m |
| +14 | Feeling unqualified for new job | 5 | 1d |
| +13 | Interview at Macro HF , what should I expect? | 3 | 3d |
| +12 | SM HF to LO as a junior? | 4 | 2d |
| +9 | Hedge Fund Sector Advice | 4 | 1d |
| +7 | Covering less deployed sector | 2 | 1d |
| +6 | Data science at SM | 1 | 17h |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
Start over
I would look very closely to make sure you don't have data on the life of the loans. If you truly don't they expect you to make an assumption so compare the loan interest to some benchmark with an appropriate risk factor and find the length that looks the closest. Otherwise I would peg the schedule to match depreciation, asset life, etc. As long as you can justify your assumption and your numbers make sense.
worry about the debt schedule later..get the model working first with just basic assumptions in for the debt. Once everything flows correctly, build in the actual debt schedule.
Nisi quasi et enim voluptates. In ipsum vero reprehenderit ratione.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...