How much financial modeling do I need to know?

Not for ibanking. You really don't need to know anything more than the basics of how financial statements work and what the models mean for ibanking.

GL

posting to follow...

dazedmonk is right, no one asks about merger models during m&a banking interviews...

for a SA/first year analyst spot the most you will likely get asked is walk me through the line items in a dcf, explain both terminal value methods, and maybe the process behind comps. other than that just know your financial statements and how they flow

All I was asked regarding LBO models was to walk the interviewer through an LBO, drivers of an LBO and how to increase returns...pretty simple if you understand the basics of an LBO model

to unnecessarily reiterate all of the comments above...

you don't need to know much. be able to walk through the financial statements, draw connections between them (i.e. what happens to all three if depreciation increases by 10), and know some basics about DCF and comps modeling.

interestingly enough though, I am very familiar with the LBO model and it is always an interesting talking point during interviews and often impresses the interviewers, although it is fairly useless because you will learn everything you need to know on the job/training and an LBO model isn't something that most bankers use anyway.

(sorry for the amount of grammatical mistakes and run-ons)

I´ve sended you PM, I´ve got some nice Pdfs

Regarding "walking through an LBO model", you can keep it fairly high level if you are asked during an interview. If you know how to build one, then you should be fine. Having said that, I was asked this during a few interviews (I also did BIWS and understood how to build an LBO) and I pretty much used the response in the "Walking Through the Model" video.

Hello,

I saw your post and wanted to share my experiences with you. I am very excited about this, I am very confident that this was the right decision and you could take another approach. Tap in all the expenses and then find out how much you have to sell in order to reach profit in a reasonable time. With an online financial planning tool, it is fairly easy to do. You just have to experiment with revenue inputs and find out the optimal solution.

Thanks a lot again Sean Kingston

www.ws-ibank.com