Interview rounds in Finance, M&A (mergers and acquisitions)

LBO questions

• define Leveraged buyout
• who are the legal parties in a LBO deal?
• what are the benefits of doing LBO?
• why LBOs are done?
• walk through a basic LBO model

Mention a few notable LBOs in 2010s around the world.

Explain the vision in these deals.

Were these deals anticipated or did they come as a surprise for the public?

Theory of Leveraged Buyouts

• LBO models
• case studies
• modeling of future merged company

Basics of a LBO, terminology on the process

LBO finance terminology

• leverage
• debt
• mezzanine loan
• equity
• return on a LBO deal
• enterprise value (EV) of a corporation
• senior note
• subordinate note
• seed
• capital
• money-on-money (MoM)
• multiples

Next part, we’re looking at a few continuation intros; the Clear Channel M&A deal and also think about the role of interest (i) in LBO metrics.