Check 1
Setup pass
From a fresh prompt, calculate entry enterprise value, debt, fees if provided, and sponsor equity without checking notes.
Count it as a pass when:
Your sources equal your uses, and you can explain why sponsor equity is the plug.
Free template + prep decision
Is the free Paper LBO template enough?
Start free. Pay for more only if a closed-note, timed attempt shows a specific gap. The four-pass test below separates candidates who need a reference sheet from those who need guided drills or broader private-equity interview preparation.
20-page printable PDFWorked examplesIRR and MOIC anchorsClosed-note readiness test
Run the readiness test firstFree download
Paper LBO Template
Paper LBO Template
Free Download
Get the 20-page PDF with the five-step framework, IRR references, worked examples, follow-up prompts, and practice schedule.
The four-pass readiness test
Diagnose the gap before choosing a prep product
Use a new prompt and keep the template closed. Give yourself one pass only when the output reconciles and you can explain it. Familiarity with the page is not a pass.
Check 2
Math pass
Project the stated operating case, calculate cash available for debt paydown, and bridge exit enterprise value to exit equity.
Count it as a pass when:
You keep EBITDA, cash flow, debt, enterprise value, and equity value separate.
Check 3
Explanation pass
Explain the return without reading the calculation back line by line.
Count it as a pass when:
You identify which dollars came from EBITDA growth, debt paydown, and any multiple change.
Check 4
Timed repeatability pass
Solve two different prompts on paper under the time limit you expect, narrating assumptions as you work.
Count it as a pass when:
Both attempts reconcile, and a small mistake does not derail your structure.
| Your result | Best next step | Why |
|---|---|---|
| 4 passes | Stay with the free template | Your gap is repetition, not more material. |
| 2-3 passes | Use guided paper LBO drills | You can isolate the missing execution skill. |
| 0-1 pass | Rebuild the broader foundation | More timed prompts will rehearse the same conceptual gap. |
Compare the three paths
Buy the narrowest help that fixes the diagnosed gap
| Path | Best for | What it adds | Limitation | Next step |
|---|---|---|---|---|
| Free template | You pass all four checks and mainly need a printable sequence, IRR anchors, and occasional maintenance reps. | A 20-page PDF with the five-step setup, mental-math references, worked examples, follow-up prompts, and a practice schedule. | It cannot observe your pacing, choose new prompts for you, or diagnose why the same error keeps recurring. | Download it and run two closed-note reps. |
| Guided Paper LBO Playbook | You pass two or three checks but need more varied drills, cleaner return bridges, or a repeatable practice plan. | A 78-page drill system with timed frameworks, worked examples, practice prompts, and explanation scripts. | It is focused on paper LBO execution, not the full private-equity recruiting process or live feedback. | Preview the playbook before buying it for $49. |
| Broader PE prep | You pass zero or one check, or your interview also includes deal discussion, fit, a full modeling test, or a case study. | Foundational LBO mechanics plus the other interview formats you need to prepare separately. | A broad guide is inefficient if the paper LBO is your only remaining gap. | Map the full interview first, then return to timed paper reps. |
Worked finance example
A clean return bridge beats a memorized IRR
This deliberately simplified case ignores fees, taxes, and interim cash flows so the return drivers remain visible. A real prompt may require each of those items.
Entry
$100M EBITDA × 10.0x = $1,000M EV
Financing
$600M debt + $400M sponsor equity
Exit
$120M EBITDA × 10.0x = $1,200M EV
Proceeds
$1,200M EV - $400M debt = $800M equity
The answer
$800M of exit equity on $400M invested is 2.0x MOIC. Over five years, that is approximately 15% IRR. The $400M equity-value gain splits into $200M from EBITDA growth at a constant multiple and $200M from debt paydown; none comes from multiple expansion.
A readiness pass requires both the calculation and that return-driver explanation.
For 2-3 readiness passes
Preview the guided drill system before buying
The Paper LBO Playbook costs $49 and adds varied drills, return bridges, worked examples, and an execution plan. It is not a live mock interview and does not guarantee an interview outcome. If you already pass all four checks, keep using the free template.
Limitations and source checks
Paper LBO formats vary. Confirm the expected time, whether a calculator is allowed, and whether the exercise includes taxes, working capital, fees, or a cash sweep. No static template can reproduce a specific firm's undisclosed interview.
The 2.0x-to-approximately-15% five-year anchor is a shortcut, not a substitute for checking cash-flow timing. Microsoft's official documentation explains that IRR is calculated from the ordered series of negative and positive cash flows and is the rate corresponding to a zero net present value.