Recruiting without operating model exposure
I’m an AN1 at a BB in LevFin (ish), and while modeling is a big part of my job, we usually only handle the financing section (i.e. LBO analysis / capital structure / debt waterfall) - oftentimes we get pre-baked operating models from sponsors / clients, or the coverage bankers will be handling the operating model / valuation analysis. We’ll build a basic operating build-up for debt pitches w/o coverage input but nothing extensive.
Thinking about on-cycle recruiting coming up, how can I catch up on learning how to build up to EBITDA without having exposure to business fundamentals? I have no problem at all building a full-blown LBO once you give me EBITDA, and I can’t imagine modeling revenues and expenses is that difficult, but in interviews I would have no experience to talk about regarding this part of the deal. Many thanks
You know what you are missing so just practice operating models yourself - Overall it looks like you got good exposure to modeling, not sure what LevFinish means tho.
On a separate note: Shouldn't you prepare for off-cycle since it's already Jan now, which arguably less modeling intensive but more dependent on yourself.
Thank you. I do feel like practicing myself is tough since so much of an operating model is DD and deal dependent - obviously it’s not hard to just assume % of sales or DSO or whatever, but I’m assuming funds would want to see a bit more than that? Appreciate any thoughts
On-cycle hasn’t happened yet for AN1s due to Covid / WFH, expect it to pick up Jan/Feb though
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