Private Equity and LBO Modeling Training Course

Are you planning to interview for private equity jobs in the near future and are nervous or anxious about the LBO modeling test during the interview?

Private equity firms typically require candidates to take a financial modeling test as part of the interview process, where candidates are asked to build a working LBO model under time pressure, analyzing a company / potential investment opportunity.

The stakes are high, because compensation for private equity associate positions can be very lucrative — often ranging from $200,000 – $350,000 or more annually. That’s 4 – 7x the national household median income by the time you are 24 or 25 years old.

The good news is nailing the LBO modeling test is a highly trainable skill. Unfortunately, many Wall Street LBO modeling courses cost thousands of dollars for a couple days of classroom instruction. 

But our Private Equity Training Videos provide the same hands-on, step-by-step training — at a fraction of the price — on how to build both complex and rapid-form LBO models that the live classes offer. Moreover, there’s no risk of “falling behind” in our course, because you can watch and learn at your own pace and review our examples as many times as you need to develop a strong understanding of how to model PE transactions.

Our LBO modeling course provides tactical knowledge and training on how to nail your LBO modeling test, making it the perfect solution for candidates who have no previous private equity experience, as well as candidates who are looking for a PE modeling refresher.

Our videos will show you how to:

  • Think intuitively about the mechanics of LBO finance
  • Model leveraged buyouts efficiently in Excel
  • Communicate your results effectively with a PowerPoint presentation

All of our training video packages grant you access to all the videos in that package for 1 full year.

 

Check out our course syllabus below and watch the first training video here!

We also offer LBO + DCF discount combo packages.

COURSE SYLLABUS (PLUS, PRO PLANS)

A. Essential LBO Concepts and Examples

  1. Overview and Agenda
  2. Key Principles and Theory of a Private Equity Transaction
  3. Capital Sources to Fund an LBO Transaction
  4. Debt Overview: Key Debt Instruments
  5. Equity Overview from the PE Investor’s Perspective
  6. What Determines Debt Capacity?
  7. Paper LBO Examples

B. Key financial modeling shortcuts in Excel

  1. Using Excel Efficiently: Core Settings
  2. Using Excel Efficiently: Number Formats
  3. Excel Shortcuts Overview
  4. Excel Shortcuts (general & cell editing)
  5. Excel Shortcuts (row & column editing, navigation)
  6. Excel Shortcuts (to change visual appearances)

C. Building a 4-hour integrated LBO model with detailed supporting schedules

  1. Setup Transaction Summary
  2. Calculating Offer Value
  3. Opening Balance Sheet
  4. Filling in Uses of Capital
  5. Build the Pro Forma Income Statement
  6. Filling in Sources of Capital
  7. Calculating Goodwill
  8. Pro Forma Balance Sheet
  9. Income Statement Projections
  10. Setup Working Capital
  11. Working Capital Projections
  12. Setup Cash Flow Statement
  13. Forecast Depreciation Schedule
  14. Forecast Amortization Schedule
  15. Other Balance Sheet Items
  16. Prepare Cash Flow Statement for Debt and Interest
  17. Setup Debt and Interest Schedule
  18. Filling in the Debt Schedule
  19. Filling in the Interest Schedule
  20. Finish Forecasting the Three Statements
  21. Calculating Leverage and Coverage Ratios
  22. Calculating Equity Returns Using EBITDA
  23. Calculating Equity Returns Using Net Income

D. Building a 60-min short-form LBO model

  1. Setup Transaction Summary
  2. Setup Detail Sheet
  3. Filling in the Historical Income Statement
  4. Filling in Key Balance Sheet Items
  5. Filling in Historical Debt and Interest
  6. Calculate Historical Free Cash Flow and Drivers
  7. Calculate Transaction Value, Sources and Uses
  8. Calculate Pro Forma Accounts
  9. Forecast Drivers
  10. Forecast Income Statement, CapEx, Net Working Capital
  11. Forecast Debt and Interest
  12. Forecast Free Cash Flow and Cash Balances
  13. Finish Detail Sheet
  14. Calculate Returns Using EBITDA

E. Creating LBO PowerPoint slides to present to the interview committee

  1. Writing the Executive Summary
  2. EBITDA, Free Cash Flow, and Returns Slide
  3. Free Cash Flow, Debt, and Industry Footprint Slides
  4. Qualitative Slides and Final Presentation

 

 

FREQUENTLY ASKED QUESTIONS

Q. Will these training videos really help me learn how to build an LBO model under time pressure so I can nail my modeling test interview?

For most private equity firms, proficient knowledge of the private equity industry is not sufficient to get the job. You can’t just talk the talk; you need to walk the walk. You need to be able to actually build an LBO model and analyze and evaluate an actual investment opportunity. This is a core technical skill you will use every single day on the job, which is why most firms dedicate 4-8 hours testing you on it.

That’s where our videos come in. We walk you step-by-step through the process of building an LBO model. First, we start with an overview on LBO transaction theory and how to calculate returns using just a pen and paper – so you understand the intuition and logic. Then we show you how to maximize your efficiency using key Excel shortcuts and tricks. We then actually build 2 LBO models together from scratch, starting from a blank Excel sheet, with no custom plugins or macros, so everyone is on a level playing field. Finally, our Plus and Pro packages show you how to crank out an efficient and effective PowerPoint presentation to present your investment findings and analysis.

These are the key skills you will need to demonstrate during your LBO modeling test on your interview day. We show you step-by-step exactly how to develop, strengthen, and master these skills, so that you are in the best position to walk in and nail your LBO modeling interview.

 

Q. Is it worth it to pay $200+ for the training videos?

We feel strongly that our training videos offer incredible value for PE interview candidates.

Quite simply, the stakes for success or failure in your PE interviews are high. Compensation for entry-level PE associates is very lucrative — often $200,000 – $350,000 or more annually. That’s 4 – 7x the national household median income by the time you are 24 or 25 years old. Once you’ve been in the job for several years, the pay can quickly rise to half a million or more per year.

That means your investment in yourself through purchasing our training videos will pay off many hundreds of times over just in your first year on the job, and it only goes up over time when you look at your earnings over the years after getting your foot in the industry.

What’s also important to remember is you usually only get one shot interviewing for private equity roles. If you don’t land a PE job in the year your “class” is being recruited, it’s really hard to come back in a subsequent year and recruit / interview again. By then, there will be a new class of PE recruits flooding the market from consulting firms, investment banks, accounting firms, and corporate strategy departments. PE headhunters will be focusing their time on this new class and it’s super hard to get their attention when they’re so preoccupied with fresh candidates coming out of 2-year rotational programs.

That makes the risk of not being totally prepared for your PE interviews very, very costly, because it could mean missing the chance of a lifetime to enter the buy-side investing world — and all the big paydays that come with it.

So ask yourself, how much is it worth it to not be totally informed and prepared for your PE interviews, and potentially lose the opportunity to break into the profession altogether?

By contrast, how much is it worth it to invest in yourself by purchasing our training videos and potentially winning a lucrative private equity job? Think about it this way: with your new PE salary, you can earn back your investment in our training videos in just your first DAY on the job — with more than enough left over to buy your friends and family beer to celebrate!

 

 

Andrew Chen

Andrew Chen received an associate offer, without any formal LBO experience, on his first attempt at applying for private equity investing positions in the competitive San Francisco Bay Area. He worked for Huntsman Gay Global Capital, the Bain Capital spin-out founded by the industrialist Jon Huntsman, former Bain Capital Chairman Bob Gay, former San Francisco 49ers Superbowl quarterback Steve Young, and including former CFO of Citigroup and American Express Gary Crittenden. Andrew was previously a member of the Corporate Finance & Strategy Practice at McKinsey & Company and holds a J.D. from Harvard Law School. You can follow him on Twitter and .

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