LMM PE Firm: Timed LBO Modeling Test (Project Apex)
The Project Apex: LBO Modeling Test is a 2.5 hour (150 min.) timed modeling test utilizing the provided transaction assumptions and test template. The test reflects the format and level of difficulty that has been given by an actual private equity firm.
Firm Overview
Type: Lower Middle Market Private Equity Firm
Latest Fund Size: <$750MM
Industry Focus: Software & Tech-Enabled Services
Project Apex Overview
Project Apex is a performance and data management software platform for the staffing industry. Read the entire 1-page handout, follow the steps below (included in the handout as well) and input relevant data into the highlighted cells in the model template provided. For assumptions that aren't specified, please use your judgement in finding a reasonable approach.
Required steps:
- Complete the sources and uses table.
- Build the income statement and balance sheet projections.
- Calculate cash flow available for debt repayment and fill in the cash flow and debt schedule.
- Input cash flow to / (from) Pro Rata Equity Partners (a fictional private equity firm) and calculate the IRR and the MOIC from the investment.
- Utilize the “Recommendation & Rationale” section to provide your investment recommendation and view of the investment highlights, risks, and key diligence questions.
Project Apex Snapshot
Be advised: The below images only represent a small portion of the included modeling test. The snapshot is meant to provide a glimpse into the format and style of the test being offered.
Test Preview: