Paper LBO

The Paper LBO is a quick test you may encounter when pursuing oncycle PE recruiting. Interviewers want to see how well you know the drivers of an LBO transaction and how quickly you can get to an answer. 

These are literally taken on paper with no calculator, so bust out a 12 x 14 and get cracking. 

Goal: Finish in 15 minutes and say whether or not we should invest in the transaction. 

Steps:

1. Write down all assumptions on a separate sheet of paper
2. Recite them 'outloud' to your interviewer to ensure you have the proper figures
3. Write out a sources & uses for the transaction
4. Verbally walk through the steps you're taking to assess the viability of the investment 
5. Round everything to the nearest whole number to make things easy

Paper LBO Prompt.docx

Paper LBO Answer