Learn more: In this tutorial, you’ll learn how to complete a full 60-minute LBO modeling test starting from a blank sheet in Excel, and you’ll learn how to simplify and work efficiently so you finish on time. NOTE: The Management Options calculations here are not quite correct. We cannot "amend" or "update" YouTube videos, but the simplest way to fix this is to keep the "Cash from Management Options" formula the same but modify the Equity to Management Option Holders so that it is as follows: =IF(H95 Greater Than 0, -$D$11*H94, 0) With this change, the "Net Equity to Sponsor" number at the bottom is correct (the most important part), but the individual components are still slightly off. There are more accurate ways to do this if you look at our tutorial on management rollovers vs. management option pools, but this simple method is fine for a quick case study. END NOTE Table of Contents: 0:00 Introduction 2:24 Part 1: Likely Requirements in Modeling Tests 7:43 Part 2: Transaction Assumptions and Sources & Uses 17:24 Part 3: Model Drivers and Income Statement 32:14 Part 4: Free Cash Flow and Debt Schedule 46:04 Part 5: Returns and Sensitivities 56:22 Part 6: Answers to the Case Study Questions 1:03:12 Recap and Summary