I totally messed up the LBO case in a recent PE interview.
I didn’t structure it well and got lost in the numbers. I’ve got another process coming up soon and don’t want to repeat the same mistakes. What can I do to improve ASAP??
If you struggled with your LBO case study, the key to improving for your next interview is preparation and focus on both structure and communication. First, ensure you have a clear, logical framework for the case. Start by outlining the deal’s key components: the target, financing structure, debt capacity, operational assumptions, exit strategy, and returns. A well-structured approach will help you stay organized and avoid getting lost in the numbers.
Next, master the core financial concepts. Understand how debt impacts returns, how to assess debt capacity, and how to conduct sensitivity analysis. Practice using these concepts to quickly and confidently make decisions. Time management is crucial — don’t dwell too long on any one section. Focus on high-level assumptions first, then dig into numbers and analysis later.
Communication is just as important. Be prepared to explain your reasoning clearly, even if you get stuck or make a mistake. Mock interviews and feedback from experienced professionals are essential for refining your technique. Lastly, stay calm and remember that demonstrating a structured, logical thought process is often more important than getting every number perfect.
By practicing with these principles in mind, you’ll be much better prepared for the next LBO case study.
Hey there,
First off: Don’t beat yourself up. Almost everyone stumbles on their first LBO case, especially under pressure. The good news is that it’s very fixable with the right preparation.
Here’s what I’d suggest: start by drilling the structure until it’s second nature. You want to be able to walk through the flow (sources & uses, debt schedule, cash flows, exit) before touching Excel. Then, practice building mini models with simple numbers. Keep it simple, get fast at the mechanics, and only then add complexity.
Also, practice to verbalize your thinking as you go. A big part of doing well isn’t just getting the math right, but showing clear logic under pressure. And finally, run through a few mock cases with someone who can give feedback. You’ll be surprised how quickly you'll improve.
If you need any support, please don't hesitate to reach out.
