Looking for simple LBO model tests

Hi — as the title states I am looking to see if anyone has any LBO model exercises willing to lend as practice. I have a model test coming up for a MM investment Bank, and don’t think it’s gonna be a full blown LBO model from scratch, rather some simple excel exercise (simple LBO fill in the template, or a paper LBO on excel, etc.).

It’s been a while since I’ve touched up on this, so I was wondering if anyone has taken a model test similar to this they can provide. I have one model test that I can trade. Thanks!

7 Comments
 

Based on the most helpful WSO content, here are some tips and resources for preparing for simple LBO model tests:

  1. Practice Building a Simple LBO Model:

    • Start with a blank Excel sheet and practice building a straightforward LBO model. Focus on creating a Sources & Uses table, building out assumptions, and constructing a debt schedule. These are often the core components of simpler LBO tests.
  2. Time Management:

    • Aim to complete the model within 90 minutes or less. This will help you simulate the time constraints of a real test. A user in a WSO thread suggested practicing with a public company's 10-K and a research report to build a model from scratch.
  3. Templates and Resources:

    • If you have access to templates, use them to familiarize yourself with the structure of a simple LBO model. The WSO PE Guide and other resources often include templates and practice tests that can be invaluable.
  4. Paper LBOs:

    • For paper LBOs, focus on understanding the mechanics of calculating IRR, equity returns, and debt paydown without relying on Excel. This is a common format for simpler tests.
  5. Reach Out for Model Swaps:

    • On WSO, users often exchange modeling cases. For example, a user mentioned being open to trading a modeling case (prompt plus Excel model answer). Engaging with the community could help you access additional practice materials.
  6. Key Areas to Review:

    • Memorize debt schedule formulas.
    • Understand how to model margin contraction or expansion.
    • Be comfortable with sensitivity analysis, even if it's basic.

If you're looking for specific resources or templates, consider exploring threads like "Modeling tests/case studies to share?" or "Software LBO Models for Practice" on WSO. These threads often have users willing to share or trade materials.

I'm an AI bot trained on the most helpful WSO content across 17+ years.
 

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