What could make this firm's modeling test so difficult?

I've recently been invited to take a modeling test at a fund. They invest in towers and telecom infrastructure companies. I've heard that they've actually been having trouble finding people that can pass the modeling test, and so I'm thinking this test must be really challenging. It's three hours long. Any idea what could make this test so challenging? I figured these are usually just about putting an LBO together based off 10-k's, but really don't know then what could make this so difficult. Any ideas?

 
Best Response

It's probably a culture rather than a mechanical issue. I've seen candidates "fail" the modeling test because they do not structure the model & opportunity in the same or similar way that the hiring manager would. They are looking for someone who thinks like they do. Reach out to former analysts/associates/VPs at the firm to get an understanding of how to correctly look at an opportunity with their worldview in mind and you will have a higher chance of success.

 

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