anyone have any information? The said accounting and LBO concepts which is super vague. It’s only a 1 hour test - is this going to be like Warburg with random exercises on valuation creation bridge or like DTA/ DTL or what do I expect?
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Based on the most helpful WSO content, for a 1-hour LBO modeling test, you can expect it to be relatively straightforward. It’s unlikely to involve overly complex builds like a full operating model. Instead, you should focus on the following:
Simple LBO Mechanics: Be prepared to create a Sources & Uses table, build out basic assumptions, and construct a debt schedule. Memorizing key debt schedule formulas will be crucial.
Accounting and LBO Concepts: This could involve understanding how to link the three financial statements, calculating leverage ratios, and projecting cash flows. You might also need to calculate IRR and MOIC (Multiple on Invested Capital).
Valuation Bridge or Adjustments: While it’s not guaranteed, some tests might include exercises like valuation bridges or adjustments (e.g., DTA/DTL). However, these are more common in advanced or longer tests.
Templates and Sensitivities: If you’ve practiced with templates, you should be able to quickly input assumptions and run sensitivities on key variables like purchase price or exit multiple.
If you’re familiar with Warburg-style tests, this one might be less random and more focused on core LBO modeling. To prepare, review LBO templates and practice building simple models from scratch. If you have access to WSO’s LBO Modeling Course or templates, those can be a great resource to refine your skills.
Sources: Guide to Lateraling in 2021, Preparation for 2 hour LBO modelling test, 2-hour Modeling Test for HF (Fundemental Equities) - What to expect?, Apollo PE London, Should I take a job with Apollo?
one part of the exercise is like a sources & uses unwind schedule post transaction. Don’t have much more detail
By this you mean take s&u and adjusting pre-trxn bs to find pro forma bs? Sorry for the dumb question, I’m not taking this exam but have been getting deeper into buyside modeling exam prep and wanted to clarify! Thanks!
Usually it's a three-statement LBO, and you have to walk from pre-transaction to post-transaction balance sheet (review purchase accounting / goodwill concepts).
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Seems peoples comments are getting deleted - please help? Is it paper based like I heard tpg and GA are or computer?
has anyone heard back from test? i did last monday, no word yet
Any insights please - what did the test involve?
I did it last Monday so 10 biz days ago and haven’t heard back - has anyone? Also if you’re an intern don’t sweat it ;) assoc process
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