Merger Model and LBO Questions


I have been doing the guides and have had a few interviews recently. I have not seen questions on Merger Models and LBO's come up so much. What do you recommend I know about these topics?


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Comments (9)

  • Analyst 1 in IB - Gen
May 25, 2020 - 11:16am

mostly the fundamentals.. e.g., why LBOs, ideal candidates, why not 90% debt 10% equity financing structure and vice versa, would a fin sponsor prefer term loan a or b all else equal except ammortization?

you need to know how to do a paper LBO as well.. questions get harder/trickier if you get them correctly or have prior ib/investment experience

but you will not get asked on advanced LBO case study questions for an SA position

Most Helpful
May 25, 2020 - 12:45pm

I can help answer any of those loan capital markets related questions / provide knowledge in that area...
Debt / equity (leverage - typical)
Pricing, terms etc

or just look at my history
of comments and I've answered this 2-3x
if you got a real interview coming up w/ this area, feel free to message me/trade emails and I can bless you w/ some more info to get you as prepared as you want

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May 25, 2020 - 1:32pm

-What is an LBO, conceptually?
-What makes a good LBO candidate?
-Give me a company that you would perform an LBO on?
-Walk me through an LBO Model?
-Give me 5 levers you can pull to increase IRR?
-Give me examples of sources and uses?
-Paper LBO

Merger Models:
-I'm not going to try and create examples, but know how to do accretion dilution math


  • 1
  • Intern in IB - Gen
May 26, 2020 - 12:20am

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