Wall Street Prep

Differences between the LBO, Bank Modeling, and Premium Package

Q: I wanted to know also about the LBO and Bank package.  I recall reading into both, and they say that they are focused on individuals who are in the Private Equity field, to which I want to know what real differences would I find between those two, and the regular Premium package?

A: The Premium Package includes a comprehensive LBO section (over 300 pages of step-by-step guidance along with model templates and video instruction). The LBO treatment in the premium package is more than sufficient for the vast majority of users. However, there are certain granularities that financial professionals active in LBOs need to be aware of that are only addressed in the advanced LBO program. The advanced LBO program covers all the topics covered in the Premium Package LBO but goes further to address several advanced topics.

Specifically, the advanced LBO modeling program integrates "switches" - enabling users to switch the model into a standalone model vs and LBO model vs a recap model on the fly.  It allows users to easily toggle between various tax treatments and see the impact (asset sale vs stock sale vs 338). In addition, balance sheet schedules in the advanced LBO include a comprehensive treatment of NOLs, deferred taxes, while the debt schedule - although quite detailed in the Premium Package LBO - is fleshed out even further to allow more modeling flexibility out of the box.

As for bank modeling, there is some conceptual crossover between the financial statement modeling section of the Premium Package and the Bank Modeling, but since Bank Modeling is so unique, the crossover is limited to mechanical issues of how to build an integrated financial statement, while the focus of the bank modeling course is very bank industry specific, focusing on the drivers, and unique financial statement and analysis of banks.

Keep in mind that for the bank modeling program, users are assumed to have completed the premium package or equivalent.  It is taught at a much faster and advanced level than the premium package or even the advanced LBO.

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