Modelling Tests for PE Internships/Analyst positions

Based on the most helpful WSO content, here are the typical components you might encounter in a Private Equity (PE) summer analyst or analyst position modeling test:

1. LBO Modeling:

   • This is a common component where you might be asked to build a Leveraged Buyout (LBO) model from scratch or complete a partially built one.
   • You may also encounter a paper LBO, which involves solving an LBO problem without a computer, focusing on your understanding of the mechanics and key drivers.

2. DCF (Discounted Cash Flow) Analysis:

   • You might be required to perform a DCF analysis, which involves projecting free cash flows and discounting them back to their present value using a discount rate.

3. Comps/Precedent Transactions:

   • Comparable company analysis (Comps) and precedent transaction analysis are also common. These involve evaluating similar companies or past transactions to derive valuation multiples.

4. Operational Modeling:

   • Some tests may include operational modeling, which involves building a model that forecasts the operational performance of a company, including revenue, expenses, and other key metrics.

For comprehensive preparation, consider the following WSO training programs: - Private Equity Interview Bootcamp: Detailed PE LBO tests and case studies. - Modeling & Valuation Bootcamp: Covers Excel, M&A, 3-statement modeling, DCF, Comps, and LBO. - Private Equity Master Package: Includes LBO modeling and PE deals process.

These resources can provide you with the necessary skills and practice to excel in your modeling tests.

Sources: Lateral Hire analyst modelling test., 2-hour Modeling Test for HF (Fundemental Equities) - What to expect?, please help Invited to Lateral On-Site Modeling Test. How To Prep for Op. Model/M&A/DCF?, Analyst Modeling Test, Evercore Lateral Analyst Model Test