Most interview processes will include building a LBO model. Your potential future employer will be testing technical accuracy, presentation skills, appropriate use of Excel and your ability to provide insight into the investment.

The test could be completed remotely or in the fund’s offices but it will typically be time-limited. As time is short, clarity is often more important than complexity. Make sure you’ve covered all key considerations and that you’re checking your work as often as possible to be sure that your calculations make sense.

If the numbers make sense, you’re on the right track; this is a straightforward skills test, it’s not trying to trip you up.

Some prospective employers will want you to talk through your model after the test, others will just require you to submit it. This is a great opportunity to demonstrate your insight into the model and what it’s telling you about the business and its opportunities.

Whether these models are unfamiliar or you do these day in and day out, you’ll need to practice.

The time pressure in these tests can trip up even the most confident modellers.

We have a range of practice materials and sample answers below that you can use to help prepare for the modelling test.
45 minute practice test

45 minute practice test answers

90 minute LBO modelling test

90 minute LBO modelling test answers