Module IV· Interview EssentialsIntermediate
Question
What questions would you ask the CEO of a potential LBO target in a management meeting?
Answer
What
In a 60–90-minute management meeting, the sponsor wants to validate the investment thesis and uncover red flags. Top 5 questions:
- Business model & USP: the top 3 reasons customers buy from you.
- Pricing power: what price increases have you pushed through over 3 years?
- Margin potential: where do you see the EBITDA margin in 3 years?
- Competition: who is your most dangerous competitor and why?
- Growth plans: which levers over the next 5 years?
Deep diveShow more details
Other important question areas
- Customer feedback: How do you measure customer satisfaction? Which customers have you lost in the last 2 years and why?
- Employees: turnover in key roles? Talent risks?
- IT / digitalization: which digitalization steps done, which still outstanding?
- ESG / compliance: which ESG risks in the supply chain?
- Capex philosophy: how do you distinguish maintenance and growth capex?
- Succession / key-person risk: who are the top 3 key people besides you?
- Personal motivation: what motivates you personally for the next 5 years?
The last question is the most important — family owners and founder-CEOs often sell because they are personally tired. Anyone who doesn't give an honest answer is a risk after closing.
Pitch tip
In a summer-analyst interview, this question bank shows that you really understand what due diligence means — not just "check the numbers" but "validate the assumptions". Have a concrete example question from your sector ready.