DCF -> LBO case study
Expecting to have a modeling case study as the next part of my interview as a lateral senior analyst. I’m assuming roughly a 2 hour case study with DCF modeling into an LBO. For reference I’m pivoting from big 4 FDD to IB, and do not have real deal modeling experience, only have worked through all of WSP. When modeling LBO scenarios, what is most common practice as a scenario selection metric? What I have been practicing modeling is having 2 approaches to choose from (1 using office price per share using Perpetuity growth model from DCF , and 1 using exit ebitda multiple). The WSP course is quite dated however so wanted to hear if there are more common ways in practice to model different scenarios. (Aside from things like PIK toggle, sensitivity tables etc)