3-4 hours model test, what should i expect?
Hi everyone, I have a PE interview coming next week. it's my first time to do PE interview and I really want some advice on how I can prepare for it. I was told i need to do a 3-4 hours modeling test in their office. It's a case study and I need to finish a model and write a brief investment memo. It is a big buyout fund and they are recruiting for their newly raised growth fund.
my question is: 1. Will it be an LBO test? I only prep for LBO...not sure if I can do DCF or other models... 2. How simplified should the model be? Do i need to include a balance sheet, or I can just include basic parts like working capital and long lived assets to build a CFS? 3. How many time should I spend on the model? I tried to practice on a case and it took me 4 hours to finish a model..
Thanks a lot and really appreciate your help!
Hey, never seen a PE ask for DCF. DCF is pretty worthless.
Check out multipleexpansion.com if you need help. It's been making the rounds and has pretty good LBO template.
thanks! that's very helpful!
I also have a similar question. i am trying to practise with the IMs i have, but most of them don't include very detailed financials, only one or two page including some basic items of IS, BS and CFS. i.e: most of them only include part of B/S with no information on share structure, or only have a brief BS on cash-free-debt-free basis. will the case in the interview similar to this? or it will be more like 10Ks with tons of information to build a complete LBO?
thanks~
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