Submitted an Incomplete Model Test - Am I Cut?
I took a 3-hour infra 3-statement modeling test yesterday that had very detailed instruction around revenue assumptions (multiple revenue streams, multiple different customers all with different contract terms, add-on capex for new revenue stream, etc). I had 2.5 hours to do a 3-statement model with an add-on component that you were meant to evaluate whether it was a good investment or not.
While they provided a lot of detailed information on revenue, no assumptions beyond EBITDA margin were provided. You had to make a ton of assumptions around entry multiple, leverage, D&A, balance sheet, etc. Truly only gave customer type, customer contract terms, COGS, and EBITDA margin. They did provide some info on the cost of the add-on opportunity and revenue + cogs for this as well.
Long story short, I did not complete the full model in time. 3-minutes following submitting the model I then had to present it to the interviewer and was super flustered.
The model it's self it was clear I have the hard excel skills + accounting/fin knowledge but, didn't have enough time. In terms of the presentation, I was pretty flustered and spoke extremely high level.
I'm wondering if anyone has ever had a similar poor experience with the modeling test and gotten moved on to the next round? I've made it very clear that I'm extremely interested in the position, have the appropriate background / experience, and willing to go above and beyond but, I bombed the model so not sure what to think.
Tricky one. Although in infra modelling is highly valued because very small changes can lead to material consequences in terms of IRR delta on a traditionally lower, stable return steady business and so to financing, presentation is key. You usually work on complex models and much of your value lies in your ability to filter information and present a high level thesis while mastering the detail when asked. I've passed 90% of the modelling tests I took and there were times when the model wasn't complete. The way I did it is I've started by explaining what I would have done had I had the time, what outcome I've expected, and very quickly turned the conversation to my understanding of the thesis, why I've liked the company. Most likely the interviewer will be more senior than the guy evaluating your model and so she/he will have more of a say in the selection process. So do make sure you're coming across confident - it's also important as it's a proxy for them to assess your command of the communication, presence and ability to come across structured that's very important when dealing with counterparties, especially potential targets' management.
That being said it depends how good the others were and what's the basis of selection. If this is a check you just get and other factors will decide such as a case study or this is very important. I wouldn't worry too much about it and write down the takeaways while they're fresh so you have them for next time - also rebuild the model to practice and make sure you have all the tricks up your sleeve for next time - and then be positively surprised.
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