Private Equity Interview Case Study Pdf ◆ «Direct»
What could go wrong, and how do we protect our capital? Valuation: What is a fair price to pay? Returns Analysis: IRR and MOIC based on your model. 3. How to Ace the Presentation
The final output where you argue for or against the investment. 4-Step Strategy to Tackle a Case Study
Weaknesses
Use the "Blank Sheet" method. Do not look for a finished PDF. Look for a PDF of the prompt (the financial statements). Print that prompt. Then, build your model from scratch in Excel. Finally, convert your output to a PDF.
As candidates progress to subsequent rounds, private equity firms ask interviewees to complete far more detailed LBO modeling tests in Excel, ranging from 45 minutes to 3 hours. Unlike the simplified paper LBO, these require building a full model from scratch, incorporating debt schedules, interest calculations, and sensitivity analysis. private equity interview case study pdf
Candidates are usually presented with a company teaser or confidential information memorandum (CIM) and given a set timeframe to analyze the investment.
A PE case study simulates the daily work of an investment associate. Interviewers give you raw financial data about a target company and ask you to determine whether the firm should invest in it. Why Firms Use Case Studies To test your financial modeling speed and accuracy.
During the presentation and subsequent Q&A, you must confidently speak the language of returns. Keep these general private equity benchmarks in mind: Target Benchmark Investor Context 20% – 25%+ The standard hurdle rate for traditional PE funds. Multiple on Money (MoM) 2.0x – 2.5x Doubling or tripling invested equity over a 5-year hold. Total Leverage 4.0x – 6.0x EBITDA Varies based on credit markets and business stability. Interest Coverage Ratio Ensures comfortable buffer to meet debt obligations. Pro-Tips for Aceing the Case Presentation
Every good investment pitch addresses what could go wrong. Never present a case study without a dedicated risk section. What could go wrong, and how do we protect our capital
An investment thesis explains exactly how the PE firm will make money. Your recommendation must fit into specific value creation levers.
Why is this a good industry to invest in? (e.g., highly fragmented market ripe for buy-and-build consolidation).
This proves you can balance a transaction. The "Uses" (Buying equity, paying debt, fees) must equal the "Sources" (New debt, rollover equity, sponsor equity).
Is the industry highly cyclical? Is there severe customer concentration (e.g., one customer making up 30% of sales)? Phase 2: Building the LBO Model (50% of Time) Do not look for a finished PDF
This article breaks down exactly what to expect, how to build a model under time pressure, and how to present your investment thesis like a seasoned PE associate. Why PE Firms Use Case Studies
Every great investment thesis must address what could go wrong. Identify the top two or three risks and provide concrete mitigations.
Create a stripped-down LBO model to understand the basic return profile.
