LBO Model Test Caveats

This comes up in a lot of them. Good test if you’re tracking cash right

Correct me if I’m wrong but I don’t think the first comment on partial IPO and partial sell off is in there ? Do you have advice for where to find examples of that ? Agree wallstreetprep advanced test is insanely helpful and contains a ton of goodies

It isn't something that will come up in on-cycle tests. Haven't heard of it coming up for anyone I know and certainly never had anything to that kind come up on-cycle for UMM/MF tests. I outlined below in the things that are very likely to come up and you should focus on. TLDR: really just be very confident on modelling out: PIK, financing fee, OID fees, non cash-free debt-free deals, management roll, management promote, and revolver commitment fee as they will account for ~80% of the "complexities" in your tests.

The added complexity is that in your returns section; projeting out IPO's timing since it has selling-out over time, so effects your IRR due to timing aspect. Just model this out in your returns section showing respective sell-offs as they happen across time periods. Partial sell-off is mechanically a similar idea in that you have some kind of early return to the sponsor by partially selling off an asset and then larger later cash flow / return when you sell off the whole business. Might be helpful buliding a mini-schedule for this with an if statement pulling that amount into your equity return to sponsor for every year including and past whatever year your partial stake sell happens.