What the title says. A MM PE fund is asking for a 4 to 5 hour on-site LBO modeling test. I can do it on my own, but have never really timed myself for a mock test this long.
Sometimes I find myself cringe when it comes to timed model tests --- while I can nail a test at home, it comes different when it's actually a test.
Besides, is Multiple Expansion's PE modeling course enough for a 4-hour test?
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Best way is to practice 4hr modeling tests. Find any potential public company and do an LBO … make sure if fits LBO criteria
Do you make your own debt assumptions ?
Exactly. Make assumptions, annotate in the model and say something like "I'm assuming this is L+2% or whatever, but we can update later as needed." Basically, if thee is any assumption you have to make and the data is not explicitly given to you (or the way to get the data is not given to you), make an assumption and then move on. Also, they may be giving you a template. If they do, feel free to modify it if you need to to get what you're trying to do.
Definitely do at least 2 practice 4hr tests. Time management is huge with these long ones. Set yourself up in a library, Starbucks (just some unfamiliar space) and bang it out.
If you're making assumptions, just choose reasonable ones and note your rationale for it. The assumptions you plug in aren't that important, just have some sort of reasoning for why that multiple (i.e. know some public comps for the industry going in).
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