Prepping for IB interviews and struggling with LBO explanations under time pressure. I’ve heard there are frameworks that focus on key value drivers to streamline the process. Could anyone share battle-tested methods from actual IB vets? Specifically, how do you prioritize which levers to highlight without getting lost in the weeds? What’s your go-to structure when the clock’s ticking?
lol ‘battle-tested frameworks’ – just say you want the cliffnotes version. heres how it goes: revenue growth, opex saves, multiple expansion. if they ask about debt schedules, tell em ‘time constraints demand we focus on key drivers first’ and watch them nod like they wanted that answer. classic.
pro tip: interviewers dont care about perfect math. they care if u sound like someone who wont embarrass them in a client room. practice saying ‘leveraging operational efficiencies’ instead of ‘cost-cutting’ and u’ll already be ahead of 90% of candidates
omg following! i totally blanked last time when they asked for a 5-min LBO walkthrough. does anyone have a step-by-step checklist? pls share if u do!
Focus on three pillars: entry valuation, operational improvements, and exit mechanics. Start by anchoring to the purchase price, then immediately bridge to EBITDA growth drivers—don’t get sidetracked by granular debt terms. I train analysts to use the 80/20 rule: 80% of your explanation should cover how value is created pre-exit.
Had a superday last year where I bombed an LBO question because I overexplained the tax shield. Later, an MD told me: ‘We’re testing if you know which details matter to clients, not if you can recite a textbook.’ Changed my whole approach!
Analysis of 37 LBO interview reports shows 92% of successful candidates structure answers as: 1) Entry Multiple Rationale (2 mins), 2) Key EBITDA Drivers (2 mins), 3) Exit Scenario & IRR (1 min). Recommended to allocate <10% of time to debt structure unless explicitly asked.