MM PE Firm: Timed LBO Modeling Test (Project Data)
The Project Data: LBO Modeling Test is a 2 hour (120 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: Middle Market Private Equity Firm
Latest Fund Size: ~$1.5B
Industry Focus: Diversified (Consumer, Business Services, Tech-Enabled Services, Manufacturing / Distribution)
Project Data Overview
Project Data offers colocation services to corporate and government clients through its data centers in California. Read the brief 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” section to provide your investment recommendation and rationale.
Modeling Test 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.