What are key attributes of models MBB builds?

business model
Recent activity on Dec 08, 2018
1 Answer
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Anonymous A asked on Dec 07, 2018

Hi experts,

Can you say what are some of the attributes of the models (decision, financial) that MBB consultants build to make recommendations for thier clients?

  • What type of engagements typically require models?
  • What are major types of models?
  • How complex are these models?
  • Are they mostly built in excel?
  • What are key building principles?
  • Do business schools sufficiently prepare MBA students to build such models?
  • How easy is it to pick up model building skills?

Thank you

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Vlad
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Content Creator
replied on Dec 08, 2018
McKinsey / Accenture Alum / Got all BIG3 offers / Harvard Business School

Hi,

  • 99% of the engagements require some kind of modeling. However, it is not necessarily financial models and it does not mean your work stream will require modeling
  • Model is a broad definition. The most common type is the financial model (pro-forma, valuation, buyout). Everything else can be called model as well (e.g. cost-cutting model calculating the effects of different initiatives)
  • Complexity depends on the project. All sorts. However, the most complex models are built by dedicated data analytics specialists, not the generalists
  • Excel
  • Google it. Too much to explain
  • Can speak for Harvard - Yes for financial models. They also provide additional Training the street modeling courses for free. But you still have to learn how to operate with large data sets
  • Take the courses and practice a lot. Training the street is the best I've seen so far, but you need to understand the financial basics.

Best

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Vlad gave the best answer

Vlad

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McKinsey / Accenture Alum / Got all BIG3 offers / Harvard Business School
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