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Most common test I've found is either A. They give you one research report and ask you to build DCF / LBO or B. they give you two research reports and ask you to build an M&A model.

Will ask you to walk through questions (valuation questions or in the M&A scenario: what is accretion / dilution, PF leverage, pay down schedule, PF ownership, consideration, premium justification etc.)

Basic mechanics are easy enough to learn. My advice is also look up to see if this case has happened before (I know a friend who was given a case of a failed public transaction as a modeling case). Always back check your numbers against research, information in the news, current market data etc.

 

as far as i know, there is only one EB that makes laterals do a modeling test.

their test is an LBO. historicals provided, you just basically have to link shit, do a debt schedule, and then sources and uses, exit calcs, etc. a bunch of sensitivity tables for IRR, leverage, etc.

 

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