Going to PE with limited modelling experience
Going to a pretty reputable MF as an associate but have never touched an M&A model, have only done LBOs, DCFs, paydown models, etc. Role is expected to be heavily execution focused and less-so on the sourcing side.
Should I be really concerned? How should I prep if I can?
by M&A model do you mean operating model or acc/dil? latter is not really important for PE
Not an acc/dil model but merger models with private co’s. have never done anything like those but can’t imagine its just a+b, unless it is…. imagine the accounting gets complicated
You will be fine, your experience is solid. For prep, you can dive deeper into operating models for your staffings to truly understand how different businesses generate earnings, and think about different returns sensitivities you can show based on that.
If you can do an LBO model you will be fine. Most scenarios are just a version of this. You could be asked to run accretion / dilution on a scenario for a portfolio company that had already gone public, but if you know how to build an LBO, it is not hard to run this type of model. Just ask your peers or the junior banking team that would likely be supporting this deal if you have questions.
Have a similar situation, where my modeling experience has been very cookie cutter sell side models and a buy side model where I didn’t really hold the pen but I had a supporting role. Pretty nervous considering I haven’t really had a crazy amount of live deal experience (but not too bad given the slow market) and relatively limited modeling experience. Any advice for someone like me?
Accretion dilution isn’t too relevant you should be more than fine.
For what it’s worth im sure you could learn basic m&a modeling in a weekend if you really tried
Sounds like this firm is really getting the cream of the croup
One of the worst things about a slow market/being a bad deal flow group is wanting to work more and getting more exposure, but just not being able to or getting the chance. How am I supposed to control whether or not I get the model if I don’t get the chance to even get a deal where I *could* get more of the model lol. Then the “jump ship” argument is a joke because this market is really bad and even then, you have to restart and there’s no assurance you’d get more modeling access in the next place
Cool
Its the firms' own fault for trying to lock people down two weeks into their IB job before they even know where stuff is in the internal drive.
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