Identify the top 3 structural threats to the business and how to protect against them. Financial Analysis & LBO Returns
Implement a "cash sweep" that uses all remaining excess cash flow to pay down optional debt balances ahead of schedule.
: List specific questions you would ask management to validate your assumptions. Recommended Preparation Materials
Calculate the Internal Rate of Return (IRR) and Multiple on Invested Capital (MoM) for the sponsor equity. Phase 3: Sensitivity Analysis (10% of Time) private equity interview case study pdf
Walk through a business model, estimate LBO returns using mental math, and debate the merits of an investment.
A non-modeling exercise where interviewers give you qualitative and high-level quantitative data on a business, giving you 15 minutes to talk through your investment thesis. 2. Core Components of a PE Case Study Pack
Before you even open Excel, you will face the . This is often conducted on a legal pad, but the output is a mental PDF in your head. Identify the top 3 structural threats to the
Sensitivity tables analyze IRR variations across multiple purchase multiples and exit years.
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
This comprehensive guide breaks down the private equity case study framework. It details what to expect and outlines how to build a winning presentation. What Is a Private Equity Case Study? estimate LBO returns using mental math
What happens if EBITDA drops 20%? What happens if you sell at a lower multiple?
Correctly calculate the purchase price based on the given multiple (usually an Enterprise Value/EBITDA multiple). Factor in transaction fees and calculate the required sponsor equity contribution.
Candidates are usually presented with a company teaser or confidential information memorandum (CIM) and given a set timeframe to analyze the investment.