LBO Modelling Test - KKR & Blackstone

The examples below are based on the two case types I laid out above. Note that you can literally just use a CIM, investor presentation or 10-K with the below prompts for practice. For context, the 1st prompt below was given out with a CIM during on-cycle last year and that was the entire case study. 

In terms of your question on management rollover/refinancing, I've seen management rollovers in on/off cycle case studies, but I have never seen a case that asks for a refinancing. Additionally, I've never seen a 90 minute case include divestiture or M&A scenario either, as 90 minutes is usually barely enough time to just complete the standard three statements.

(1) 90 minutes to create a full three-statement LBO model from scratch

1. Build a full 3-statement (Income Statement, Cash Flow Statement and Balance Sheet) LBO model starting from blank excel sheet

2. Time limit: 90 minutes

3. Use the CIM to develop a projection that you think is reasonable based on your understanding of the company. Prioritize building a functioning model over developing assumptions – there is no pass/fail for reasonableness of the projection

4. Don't plug balance sheet

(2) 90 minutes to create an LBO model based on a partially filled-out template and create a brief investment memo on the prospect

Essentially the same instructions as above, but would include the following prompt :

In the event you have time, please prepare a brief summary that addresses:
 Summary of opportunity and recommendation
 Investment thesis and expected returns
 Strengths and risks of the investment
 Key diligence questions you might ask in a meeting with management