As someone who worked in European LBOs and interviewed associates, I would ask:
Are you following the private equity / LBO market? What did you think about about Deal X (name one of the recent deals)? Do you think it will be a good investment and why?
What do you think is the worst deal our fund has done? Best deal? What makes them good / bad investments?
Among the companies you know and follow, what would be a good LBO candidate? Why? (if the person does not know, then I would ask what theoretically makes a good LBO candidate)
I am looking for someone who has an opinion and is beginning to exercise their investment judgment muscle. I am impressed with the people who focus on valuation and understand that if you overpay for a good company, you can lose money and if you buy a mediocre business cheaply, you can make good money.
Also, I am impressed with people who can analyze the industry in a systematic way and dissect the company's business model. Management assessment is also a good brownie point as it demonstrates the maturity of the associate candidate.
Hi Tamara - thanks for the extremely insightful post! Can you give an example of a systematic analysis of an industry + dissecting a company business model? Also, what kind of comments on management do you look for in particular?
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As someone who worked in European LBOs and interviewed associates, I would ask:
Are you following the private equity / LBO market? What did you think about about Deal X (name one of the recent deals)? Do you think it will be a good investment and why?
What do you think is the worst deal our fund has done? Best deal? What makes them good / bad investments?
Among the companies you know and follow, what would be a good LBO candidate? Why? (if the person does not know, then I would ask what theoretically makes a good LBO candidate)
I am looking for someone who has an opinion and is beginning to exercise their investment judgment muscle. I am impressed with the people who focus on valuation and understand that if you overpay for a good company, you can lose money and if you buy a mediocre business cheaply, you can make good money.
Also, I am impressed with people who can analyze the industry in a systematic way and dissect the company's business model. Management assessment is also a good brownie point as it demonstrates the maturity of the associate candidate.
Good luck,
Tamara
Hi Tamara - thanks for the extremely insightful post! Can you give an example of a systematic analysis of an industry + dissecting a company business model? Also, what kind of comments on management do you look for in particular?
Could you please PM me and I will try to help?
A laborum repellendus nisi vero. Perspiciatis molestiae et aut expedita. Quaerat sed corporis aspernatur quis fuga corrupti illum. Tempore quisquam est recusandae et qui. Vero quae maiores iusto nesciunt quaerat reprehenderit.
Repellendus est eum saepe et delectus. Repellat voluptatem praesentium dignissimos culpa et. Facere officiis labore quis inventore nisi possimus. Sapiente in dolor dolor tempore. Dolores eos totam quaerat natus quis corporis. Esse laudantium est explicabo saepe. Tenetur suscipit et necessitatibus est ullam.
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