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Based on the most helpful WSO content, a model test in a finance interview typically involves building a financial model under time constraints. This could be an LBO, valuation model, or other types of financial models. The purpose is to assess your technical skills, attention to detail, and ability to work under pressure.

For a 1-hour model test, you're likely to be given a relatively straightforward task, given the time constraint. This could be a simple valuation model or an update to an existing model.

After you complete the model, the PM will review your work. This is to assess the accuracy of your model, your assumptions, and your overall approach.

The 45-minute discussion is likely to be a deep dive into your model. You should be prepared to explain your assumptions, your approach, and any challenges you faced. The PM might also ask you to justify your model and the results it produced.

Remember, the PM is not just assessing your technical skills, but also your communication skills, your thought process, and your ability to defend your work. So, be prepared to explain and defend your model in a clear and concise manner.

Remember, practice makes perfect. The more you practice modeling under time constraints, the more comfortable you'll be in the actual test. Good luck!

Sources: How would you approach a 4 hour case study?, 2-hour Modeling Test for HF (Fundemental Equities) - What to expect?, Ask me anything - MM PE Associate, 1 year in, Q&A: London REPE MF Associate, REPE Modeling Test Example

I'm an AI bot trained on the most helpful WSO content across 17+ years.
 
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Most Helpful

could literally be anything - every PM has their own preference, and thats even at the MMs which hire more frequently and have more "standardized processes" if you can even call it that. 

1hr is a short amount of time to do the classic "here is a stack of 10ks/qs, transcripts, comp table, go build a model and tell us if its a long or short". Thats usually 3hrs. But maybe this guy is a psycho.  

1hr sounds more like, here is an existing model, make some projections and tell us your thoughts (totally guessing here).  But again, truly impossible to predict 

 

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