PE Interview Drill: Technicals, Deal Walkthrough and a Paper LBO
What this drill is
This is a multi-stage private equity technical drill rather than a single grounded business case. It covers three of the core exercises used in PE recruiting: technical questioning across accounting and capital structure, a deal walkthrough, and a timed, calculator-free paper LBO.
Each section is scored independently — there is no central question running across the whole document, so every question stands on its own.
How to work through it
Two technical questions drawn from different knowledge areas, a deal walkthrough built around a real recently announced transaction, and a paper LBO you work through without a calculator.
Each section tests a different skill: technical recall and reasoning, commercial judgement under questioning, and mental-maths fluency with LBO mechanics. Difficulty: intermediate. Expect roughly 35 minutes end to end.
If depreciation increases by $10, walk me through the impact on all three financial statements.
- Technical — accounting and financial statements.
- Assume a tax rate and state it explicitly.
What's rollover equity, and why does it matter for calculating the sponsor's actual return?
- Technical — capital structure and debt.
- Expect a follow-up: if rollover equity is 15% of the total equity cheque and total equity proceeds at exit are $400m, how does that change the sponsor's MOIC?
Pick a private equity or M&A deal you've followed recently and walk me through it: background, rationale, the public numbers, the risks a sceptic would flag, current status, and why you find it interesting. Aim for under two minutes before I follow up.
- If you'd rather work from a given transaction: on 18 August 2026, Francisco Partners agreed to acquire Weave Communications (NYSE: WEAV), a healthcare-focused patient engagement and payments software platform, in an all-cash take-private valuing the company at roughly $650m.
- Weave shareholders receive $7.40 per share, about a 34% premium to the 17 August 2026 close. Weave was founded in 2008, is headquartered in Lehi, Utah, and serves more than 40,000 healthcare practice locations.
- The board unanimously approved the deal and it is expected to close in Q4 2026, subject to shareholder and regulatory approval. Francisco Partners has said it will invest further in Weave's AI capabilities and expand its payments and revenue-cycle-management offering.
- Facts current as of 18 August 2026 — re-verify before using, as terms or timing may change before closing.
Here's a paper LBO — no calculator, rounded mental maths. A sponsor buys a company with $50m of LTM EBITDA at an 8.0x entry multiple, financed with 5.0x EBITDA of senior debt plus sponsor equity, with $10m of transaction fees added to uses. Over a five-year hold EBITDA grows to $65m, cumulative free cash flow of $150m pays down debt, and the company exits at the same 8.0x multiple. What's the MOIC and approximate IRR?
- The exhibit shows only the given assumptions — entry inputs at Year 0, exit inputs at Year 5. The free cash flow build and debt schedule in between are yours to work through.
- Target time: seven minutes, calculator-free.
Say it out loud instead.
Practise this case type live with an AI interviewer that asks follow-ups and pushes back on your logic.