For a AN1 at a BB (GS, MS, JPM), are they expecting a perfect LBO to be done in 1 hour - i.e. calculating MOM, IRR, Exit, scenarios, and 6 charts. Realized I messed up on one part in calc which threw off my MoM and IRR - the girl did say that they made it challenging and that most people did not finish, despite being off by ~3-5% I finished the case.
I also chose to focus more on the math rather than formatting was that the right call?
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Based on the most helpful WSO content, for an Analyst 1 (AN1) at a bulge bracket bank like GS, MS, or JPM, the expectation for an LBO case study in a 1-hour timeframe is not perfection but rather demonstrating a strong grasp of the fundamentals and the ability to work efficiently under pressure. Here's what you need to know:
Accuracy vs. Completion: It's common for these cases to be designed to challenge candidates, and many do not finish within the allotted time. Being off by 3-5% on metrics like MoM or IRR is not a dealbreaker, especially if you can explain your thought process and identify where the error occurred. Recruiters value your ability to think critically and adapt more than flawless execution.
Math vs. Formatting: Prioritizing the math over formatting was the right call. While clean formatting is important, the primary focus in these cases is on your ability to build a logically sound and accurate model. Formatting can be improved later, but errors in the math or logic can undermine your credibility.
Key Deliverables: In a 1-hour LBO case, the focus is typically on:
Challenging Nature: The feedback you received about the case being challenging and most people not finishing aligns with the norm. These tests are often designed to assess how you handle pressure and prioritize tasks, rather than expecting a perfect submission.
In summary, your approach to focus on the math and completing the case, even with minor errors, was appropriate. If you can articulate your thought process and show that you understand the key drivers of the LBO, you'll still make a strong impression.
Sources: Ask me anything - MM PE Associate, 1 year in, Q&A: 1st year VC analyst (~750M AUM), Q&A - 1st Year PE Associate at a US MF in Europe (KKR, BX, TCG, WP, TPG, BC, APO), NEW Financial Modeling Training Courses, Private Equity Recruiting Walkthrough – My Experience
is this offcycle?
It’s FT
Never heard of FT recruiting requires LBO modeling..which bank is this?
There's a minimum bar but it's also relative to the other candidates.
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