Hey all - have been spending a few months building financial models in preparation for applying to PE firms. Coming from a consulting background, so I really haven't gotten that exposure before. For modeling tests and case interviews, how in-depth do you recommend going for building a DCF (or even a 3-statement model)? I'm assuming most of these would be 1-3 hours, so I do I need a sensitivity table, debt schedule, tax schedule, etc.?
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If you're interviewing for PE, I doubt you will be asked a single question related to DCFs.
Review three-statement models and learn how to build a three-statement LBO.
Cool thanks, any advice in terms of how in-depth a 3-statement model should be then?
Find a few practice models online. Doesn't need to be super in-depth, I would recommend the following:
https://multipleexpansion.com/2017/08/31/Training-LBO/ good example to use. Slightly more complicated having a few tranches of debt, otherwise is very simple.
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