Ten minutes, one sheet of paper, no calculator. The paper LBO isn't testing arithmetic — it's testing whether you understand that buyout returns come from three levers and nothing else.
You're handed a pen and given ten minutes. EBITDA is $100 million, the entry multiple is 10x, the deal is funded with 6x debt at 10% interest, EBITDA grows $10 million a year for five years, D&A and capex are both $20 million, the tax rate is 25%, and you exit at the same 10x. Go. Almost everyone can do the arithmetic; the ones who pass are the ones who lay it out in the right order.
— Educational, not financial advice.