Every firm is different and every interviewer is different. A paper LBO is definitely a reasonable potential screener, so no reason not to be prepared.
You may get one, may not. If you don't, it's still a concept you'll need to understand for the real job, so it's worth learning.
I agree with this response. That being said, I wouldn't go overboard with the prep. There's a lot online, but I have yet to see a paper LBO more complex than something like... revenue 100M growing 25M a year, 30% EBITDA margins, 10% D&A, 10% interest, 10% capex. Purchase entry and exit 10x LTM EBITDA, 5x leverage. No pre-payment of debt. Usually. So just calculated cumulative cash flow.
It's also just a screener... if it takes you slightly longer to do the mental math, it's not a big deal.
That's been my experience, on both sides of things. Feel free to correct me, if your firm does differently.
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Every firm is different and every interviewer is different. A paper LBO is definitely a reasonable potential screener, so no reason not to be prepared.
You may get one, may not. If you don't, it's still a concept you'll need to understand for the real job, so it's worth learning.
I agree with this response. That being said, I wouldn't go overboard with the prep. There's a lot online, but I have yet to see a paper LBO more complex than something like... revenue 100M growing 25M a year, 30% EBITDA margins, 10% D&A, 10% interest, 10% capex. Purchase entry and exit 10x LTM EBITDA, 5x leverage. No pre-payment of debt. Usually. So just calculated cumulative cash flow.
It's also just a screener... if it takes you slightly longer to do the mental math, it's not a big deal.
That's been my experience, on both sides of things. Feel free to correct me, if your firm does differently.
Explicabo quibusdam maiores eum praesentium. Velit omnis aut eum aliquam reiciendis quasi at vel.
Nobis veniam in sunt consectetur necessitatibus beatae consequatur odio. Sed consequatur tempora corrupti aut eum vel.
Dignissimos aliquam perferendis consequuntur assumenda. Eum quia mollitia exercitationem voluptatem libero dolor.
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