LBO Case Study

Hi!

I have a case study I purchased but it didn't come with the solutions. Would anyone be interested in trying to complete it in the next ~2-3 days? Happy to send it over as long as you're willing to share your results. Would be super helpful to compare what I'm getting to your answers. It's a 1-hour modeling test that comes with a template and instructions. 

Let me know!

68 Comments
 

hey there, lmk how you want me to send the completed model. also for the group's benefit would be great if we can aggregate the "answer key"...i think would be beneficial for all

 

cool, i uploaded it. please check yourself as well as i might have missed something etc. lmk if so!

have done this for an interview here or there myself

 
Most Helpful

Hi! Wanted to clarify the following (keep in mind I'm newer to modeling so I may be completely wrong but wanna test this, thanks!):

  • I understand why you're taking the 10% non-cash and then adding it back to EBIT. I think that makes perfect sense.
  • Where is the 2% cash interest that is supposed to be accrued? Why are you adding the 15 million back to EBIT and then subtracting it in the interest line?
  • Impact on the model (This is my best guess. would love everyone's input):
    • Financing and Interest Calculation: Shareholder loan is good to go unless I'm missing something
    • Financing and Interest Calculation: There should be a cash interest line added under the "Cash" which takes 2% cash interest based on the opening balance of the shareholder loan. This should then flow into row 69 "Interest" in the Cash Flow Statement section and deduct from the cash flow.
    • Tax Calculation: Add the Cash interest expense here and deduct 100%.

Would love everyone's thoughts / opinions here. Thank you!

And just posting here for faster / more community engagement.

 

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