Advanced LBO Model-PC

You made it. The 'Advanced' LBO model. This is a combination of all of the previous PC scenarios featured. This is something you'd likely see at a really sweaty shop or as a 3-4 hour modeling test.   

There are not as many scenarios to plug in here as there in private equity modeling. However, there are multiple separate tabs to complete: Base, Downside, and Breakeven.

Think before you act is critical here. Take time to set up your assumptions and go through areas where you need to consider the effects of the different scenarios at play. If you can do this from a blank sheet, then you'll be ready for 99% of all PC modeling tests. 

Goal: complete the template in under 1 hour, model from a blank sheet in 2 hours. Try to summarize in 3 sentences or less why this would or would not be a good investment purely based on the output of the model. 

Steps:

1. Download the prompt and use the attached template to assist your modeling 
2. Take a minute to look through the different sections of the model to understand where inputs may be flowing and where outputs are coming from (multiple scenarios here)
3. Work the model top-down filling in the assumptions section, then the sources & uses, etc. You should only have to fill out the cells colored light gray 
4. After a first try, open up the answer file and really study the underlying formulas and the levers to impact returns 
5. Attempt the template again. After completing the template with no assistance from the answer file, open up a blank excel and try to build a model from scratch to answer the prompt

The_Pulse_LBO_Model_Advanced_Prompt PC.docx

The_Pulse_LBO_Advanced_PC.xlsx

The_Pulse_LBO_Advanced_Answer_PC.xlsx

📌Password: Buyside📌

Tip: Build the 'Base' scenario first and just copy the entire sheet. Then, rename it as the 'Downside' case and tweak the assumptions. Do the same for the Breakeven analysis