7 questions reported in Audax interviews, organised by the group that asks them. Every question carries a model answer and graded feedback on your own attempt.
Questions
Easy · Medium
Hard
Model builds
Built in the spreadsheet grid
LBO modelling, leverage capacity, value creation plans and exit paths. 4 questions
A dominant PE strategy. Expect to discuss it in any mid-market fund interview.
Explain the economics of a buy-and-build strategy, including multiple arbitrage. What conditions make a roll-up work, and why do so many fail?
Tests how you'd actually run a workstream as an associate.
You have three weeks of exclusivity on a mid-market manufacturing business. Structure your commercial diligence. What are the three questions you must answer before the investment committee?
Buy-and-build is the dominant mid-market strategy. Expect the maths without a calculator.
A platform was bought at 10.0x EBITDA with $100m EBITDA and 6.0x leverage. It acquires an add-on with $20m EBITDA at 6.0x, funded entirely with new debt. What happens to the sponsor's equity value and…
Every buyout runs one, and associates are expected to interrogate it.
A seller presents $50m of "Adjusted EBITDA". What does a quality of earnings analysis look for, and which addbacks would you challenge?
Blended return construction, PIK, warrants and intercreditor terms. 2 questions
Junior capital providers choose between these regularly, and the reasons are not obvious.
A sponsor needs $150m of junior capital. When would you provide it as mezzanine debt versus preferred equity?
Junior capital interviews test whether you can build a blended return across instruments.
Structure a $100m mezzanine investment targeting a 15% IRR over a five-year hold. The borrower can afford 8% cash interest. How do you get there?
Merger models, accretion/dilution, purchase accounting and deal judgement. 1 question
Common in middle-market M&A where buyer and seller expectations diverge.
A buyer values a target at $80m; the seller insists on $100m based on a forecast the buyer doesn't believe. What structures could bridge the gap, and what are the pitfalls of each?
Write your answer, get it graded on technical accuracy, completeness and communication, and see exactly which mechanic you missed.
Company tags reflect where a question type is commonly reported in interviews. They are not sourced from, endorsed by, or affiliated with Audax.