Houlihan Lokey modeling test

Based on the most helpful WSO content, modeling tests for lateral hires at firms like Houlihan Lokey often focus on financial statement modeling, DCF, M&A, LBO, and comparable company analysis. For a 2-hour proctored test, you can expect a relatively straightforward but time-sensitive exercise.

Here’s what you might encounter: 1. Three-Statement Modeling: Building or updating a basic three-statement model with income statement, balance sheet, and cash flow projections. 2. DCF Analysis: Calculating intrinsic value using discounted cash flow methodology, including assumptions for WACC, terminal value, and growth rates. 3. LBO or M&A Scenarios: A simplified leveraged buyout or merger analysis, focusing on key metrics like IRR, purchase price, and synergies. 4. Comps Analysis: Performing a quick comparable company or precedent transaction analysis to derive valuation multiples.

Given the time constraint, the test will likely assess your ability to work efficiently, make reasonable assumptions, and present a clean, logical output. Brush up on Excel shortcuts, ensure you’re comfortable with linking financial statements, and practice building models from scratch to prepare effectively.

Sources: 2-hour Modeling Test for HF (Fundemental Equities) - What to expect?, Lateral Hire analyst modelling test., Ask me anything - MM PE Associate, 1 year in, Preparation for 2 hour LBO modelling test, Evercore lateral interview: what to expect in terms of questions and modeling test?