I have read most of the Rosenbaum book, but I skipped the LBO sections originally. Have you ever had to talk about an LBO or any aspect of them in an IB 1st year analyst interview?
I know it probably doesn't hurt to learn it. But I just want to spend my time wisely and I'd rather focus on networking than learning LBO if it is unnecessary.
| +460 | Don’t work at UBS - UBS Sucks | 45 | 13m |
| +330 | Article - UBS’ Investment Bank Keeps Losing Ground | 43 | 1d |
| +219 | Should My Intern Get a Return Offer? | 59 | 1d |
| +62 | Getting Laid in IB? | 28 | 1d |
| +56 | F*ck it I'm Going to Med School | 19 | 3d |
| +54 | Intern keeps sleeping at work - what to tell them | 26 | 1h |
| +51 | Living in greenwich as an analyst? | 10 | 11h |
| +47 | Incompetent and annoying co-intern | 20 | 2h |
| +33 | Nauseous every morning for past 3 years in IB, anyone else? | 22 | 2h |
| +33 | Quick Thoughts on CVC AI Sale Process | 5 | 3h |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
Yeah when I interviewed FT I had most banks quiz me on basic LBO technicals. Nothing crazy, just know high level basics like what general characteristics make a good LBO target, know how different levels of leverage impact returns, etc.
Learn the basics, more if you're aiming for lev fin or sponsors
Got the same as Raptor: what is a LBO, what makes a company the right target, what is IRR...
The real meat and potatoes of DCF / LBO is the Operating Model and even to some extent Acc./Dil., even though you're smashing two companies together. IMO, if you understand the Operating Model, then you can conceptually plug in all the additional schedules necessary to drive an LBO or DCF.
They're all cash flow based valuations, but with the back-of-the-envelope type LBO questions you'll get in an interview all you need really need to know is that you're adding transaction assumptions, wiping some shit out on the balance sheet, hitting up the P&L to reflect the changes, and watching it flow through to drive some returns.
But I think the understanding for LBO really comes from have a solid foundation in the 3-Financial Statements. So you'd be better suited at this point developing comfort w/ the Operating Model, and then pivoting to LBO and obviously DCF.
Probably not the answer you want to hear, just my two cents.
ok, thanks guys. I will be sure to go back and read those sections
Not sure the Rosenbaum book will help you understand LBOs from a high level. There have been a ton of materials posted here that have primers and research written about it that can help you better than learning how to model an LBO
Numquam amet quibusdam dolor voluptate aspernatur qui ipsam magnam. Tenetur totam culpa cupiditate dolorem necessitatibus consequatur. Eveniet id voluptas minus aut laborum quo repudiandae.
Quo nesciunt deleniti explicabo vel natus molestias. Veritatis exercitationem modi sed non excepturi sit. Maiores fugit voluptatem nihil quia accusamus. Architecto non magni quas aut cum commodi vel. Autem natus molestias cum et. Eos consequatur consequatur libero nam.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...