I am currently working my way through BIWS (fantastic course btw), and I am now up to LBO valuation.
I often hear about kids being asked about basic accounting, projection models, DCF analysis, and multiples. However, I have not heard anything about merger models and LBO questions in interviews.
How common are these? Should I spend just as much time on these as the other aspects of financial modeling?
Trending Content
| +169 | The "Not So Obvious" things that get you a return offer? | 20 | 2h | |
| +101 | Is my life over after not getting GS? | 25 | 1h | |
| +65 | Best IB group on the Street | 27 | 3h | |
| +56 | BIG FOUR ARE PARADISE | 15 | 4h | |
| +49 | Thoughts and tips on how to speak like an investment banker. | 25 | 5h | |
| +46 | Tell me one good reason why Jefferies isn’t going to be a top bank in the next 5 years | 22 | 7h | |
| +36 | UBS Outlook | 28 | 1d | |
| +35 | Georgetown Placement for 2024 and 2025 | 21 | 6d | |
| +34 | How to deal with egotistical team? | 6 | 3d | |
| +33 | Highest Paid Bankers in Toronto? | 51 | 3h |
Career Resources
Not for ibanking. You really don't need to know anything more than the basics of how financial statements work and what the models mean for ibanking.
GL
posting to follow...
dazedmonk is right, no one asks about merger models during m&a banking interviews...
for a SA/first year analyst spot the most you will likely get asked is walk me through the line items in a dcf, explain both terminal value methods, and maybe the process behind comps. other than that just know your financial statements and how they flow
All I was asked regarding LBO models was to walk the interviewer through an LBO, drivers of an LBO and how to increase returns...pretty simple if you understand the basics of an LBO model
to unnecessarily reiterate all of the comments above...
you don't need to know much. be able to walk through the financial statements, draw connections between them (i.e. what happens to all three if depreciation increases by 10), and know some basics about DCF and comps modeling.
interestingly enough though, I am very familiar with the LBO model and it is always an interesting talking point during interviews and often impresses the interviewers, although it is fairly useless because you will learn everything you need to know on the job/training and an LBO model isn't something that most bankers use anyway.
(sorry for the amount of grammatical mistakes and run-ons)
I´ve sended you PM, I´ve got some nice Pdfs
Kindly send those to me as well.
Thanks.
I'd appreciate them as well. Thanks in advance.
Can I get those as well? Thanks
Send me PM
could you please send them to me as well thanks
Regarding "walking through an LBO model", you can keep it fairly high level if you are asked during an interview. If you know how to build one, then you should be fine. Having said that, I was asked this during a few interviews (I also did BIWS and understood how to build an LBO) and I pretty much used the response in the "Walking Through the Model" video.
In all seriousness, you need to know A LOT of modeling, especially with the emergence of online training tools such as Macabus, BiWS, TTS, WSP. I had an interview with Jefferies for a FT and I was grilled on LBO the entire first round (3 min for walk me through your resume, 20 min for LBO). Keep in mind that I didn't have anything remotely related to LBO on my resume.
Hello,
I saw your post and wanted to share my experiences with you. I am very excited about this, I am very confident that this was the right decision and you could take another approach. Tap in all the expenses and then find out how much you have to sell in order to reach profit in a reasonable time. With an online financial planning tool, it is fairly easy to do. You just have to experiment with revenue inputs and find out the optimal solution.
Thanks a lot again Sean Kingston
www.ws-ibank.com
Commodi nisi rerum suscipit. Est odit facilis voluptas ipsam. Id a repudiandae quod ad eos libero. Maiores consequatur eum veritatis tempora maiores quas eos. Quo amet eum quas repudiandae. Et corrupti omnis mollitia aut aut voluptas perspiciatis. Et est tenetur voluptatem eligendi rerum et.
Vel aliquam ratione veritatis possimus dignissimos. Dolorum tempora quis excepturi necessitatibus dolorem vel quod aut. Quidem animi ut minima expedita blanditiis et. Est provident qui accusantium. Facere eaque iure facere aut modi et.
Possimus dignissimos omnis sint sit mollitia. Provident est iure ullam voluptatem corrupti. Voluptatum unde perferendis dolorem incidunt facilis.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...