Should IBD SA candidates expect to be quizzed on LBO modeling if they have no prior experience indicating that they should know it? I know this is unlikely in first rounds but what about in final rounds?
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I doubt you will be asked. Just dont bring it up if you dont know anything about it. I was asked about it in depth for all my FT interviews because I had decent exposure and work with sponsors during my SA. for all of my SA interviews nobody ever touched the topic of LBO models.
Deepens on the group... but I have heard certain groups asking to walk through an lbo in the first round
The most in-depth question re: an LBO that I've had in a first or second round interview is "walk me through an LBO," which can be easily answered with a basic knowledge of LBOs. You don't need to know any technicals outside of understanding what an IRR is and how an LBO actually works. Either way, I've only come across this question twice in 70+ interviews.
You had 70 + interviews ? I hope you were able to land a job lol
I got asked this, I would just be able to walk someone through an LBO and be well spoken, they dont expect you to be able to construct a model from scratch on the spot (that said I did not get an offer from the firm in question)
Wait, so for a BB, they won't expect you to understand LBO modeling?? I was asked to walk through an LBO and how to build one from bottom up at a boutique. Are the BB interviews that easy? Coming from a non-target is screwing me so hard this year...
I have been asked "what are some ways to increase IRR in an LBO?" I gave the three big reasons, the guy said 'Yes, that is correct. What are some more ways?', and kept asking that question. He kept a tally of how many unique answers I gave and let me stop after 14. I was really struggeling for the last couple.
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