How to go about business model assumptions

Hey there,

I have some private equity interviews with large-cap funds lined up and have sorted a little bit through potential interview questions. One common theme, similar to some IBD interviews, is that interviewers ask to walk through the P&L of any company from industry and ask you to make assumptions on any potential line items (e.g. Margins, cost drivers). I find those kind of questions hard to prepare for and don’t know how to go about learning for it. Do you guys have any tips?

 

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