<PLEASE HELP> Lateral IB Modeling Test
Was told I’d have to take a 2 hour timed modeling test for a lateral – final step before super. Could someone with experience please provide any insight on what to expect / share any model examples to leverage? This would mean a lot and I’d be forever indebted. Thank you.
bump
which group is this for? if its M&A i'd expect a LBO. If its Rx it expect a cash flow model with multiple tranches of debt
This is M&A. How certain would you say it’d be an LBO? And would you have any guides that’d be helpful to train the extent of how difficult the LBO would be in the 2H span?
well seeing as how you aren't saying which firm it is, there is no way to know what your firm is going to do. you'll probably need to project out a 3 statement model given certain guidelines, a debt schedule, a sources and uses, and a returns analysis. Potentially they may ask for a quick & dirty dcf, but thats just a linking exercise to your 3 statement and putting together a WACC. Can only do so much in 2 hours
Know how to build an operating model and do basic industry research/build a slide if need be. i took a modeling test (LMM bank) and had to do just that. Also did a top MM modeling test and it asked for LBO (basic sources and uses) and a one-pager on a particular industry, my thoughts on industry growth, comps in the industry, etc. due in 2 hours as well. Shouldn’t be overly difficult but you do need to be prepared.
Thanks for your insight man. This is an M&A role but for a particular industry group – was provided no detail but would you say LBO would be more common with the typical S&U creation vs. a 3-Statement into DCF/MM?
If there is supplemental parts to the test such as a writing section, then it will probably be just LBO, no operating model. If it is 100% modeling exam, it will likely be 3 statement, DCF, LBO.
Currently at a no name boutique looking to lateral to a MM shop and want to prep for modeling tests.
How did you go about prepping for them?
What did the lbo consist of? Operating model and then basic S&U from that or a debt schedule as well?
Was the industry specific stuff because this was for a coverage role?
Dude just practice for both full 3 statement dcf build and lbo build shouldn’t be that hard.
Lbo modeling tests are pretty easy theres just a few things u gotta remember.
3 statement might be more tricky tbh with making assumptions but they should be both straightforward enough to practice both.
I’d say practice 2-3 LBO and 4-6 reps of a 3 statement test if you have a week to prepare. If only a few days then do 2 LBO and 3, 3 statement. Should do 1-2 a day and also spend about 30 mins reflecting / however much u need.
Bang, ull do great. U need to practice ‘the test’ as much as just learning. But I think someone with 0 knowledge doing the above could do a pretty good job tbh
Prepping for modeling tests as I'm looking to lateral now. How would you reccomend practicing these? Make up a company to keep things simply or pull a public company's 10-K? Any resources that are helpful for building these on your own? (As opposed to WSP who walks you through step-by-step with videos? Any other insight would be helpful.
Good luck preparing! Mind PMing me regarding lateral strategies? I would love to pick your mind on a few things... thanks!
I am not able to share any models with you, but if you have a specific question about your LBO model (in excel), hit me up via pm. I have made and seen plenty of LBO models, ranging from fairly short (1 sheet) to highly detailed (10+ sheets) LBO models.
What kind of firm is this?
Alot of banks give modeling tests to laterals
Ik just curious whos hiring lol
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