Restructuring Modeling Test
I'm in the process of lateraling from a BB industry group to a top EB restructuring group. The next and final round involves a 2-3-hour "restructuring modeling exam." Is this mostly a formality, given that I have already made it past the superday? What should I expect the test to consist of? Would greatly appreciate any advice/info you guys could offer.
usually in rx the most basic sort of model you build is just a recap model, so pretty much an LBO with forward projections for operating metrics but instead of modeling a capital stack with increased leverage you’d have different financing scenarios with decreased leverage. just be comfortable with that conceptually and with building debt schedules, etc and you should be fine
This is very helpful. Thanks! How complex might the priority rules be for the cash flow waterfall?
honestly not too sure but i doubt they’d be too complex. after all, the point of the exercise is to see if you can put together a simple model in a reasonable time frame, so i can’t imagine they’d throw you any seriously weird capital stacks
That makes sense. I'll let you know how it goes. Thanks!
Guess also depends on which year you’re in. If you just joined this year the model might be easier
Did you find the opportunity from networking or did you submit your resume to a listing online?
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