Build a robust debt waterfall incorporating mandatory amortization, revolving credit facilities, and cash sweeps.
: Understand the core reason for the potential deal .
Detailed overview of critical diligence items you would investigate further if allowed to proceed with the transaction. 💡 Pro-Tips for Acing the Presentation
Usefulness
What is the allowed for the exercise (e.g., 2-hour onsite or 3-day take-home)? Which industry sector does the target company belong to? private equity interview case study pdf
Include sensitivity tables (e.g., IRR based on exit multiple and leverage). Model a "management case" vs. a "downside case." 3. How to Find a Private Equity Interview Case Study PDF
Assumptions are clearly separated from calculations using standard financial color-coding (blue for inputs, black for formulas).
The of the firm (e.g., SaaS, healthcare, industrials) The exact format of the case study you expect to receive
3–4 hours + 30 minute presentation Tools: Excel, PowerPoint, data room (CIM) 💡 Pro-Tips for Acing the Presentation Usefulness What
By 3:00 AM, the strategy shifted. The "Growth Story" was dead. Long live the "Divestiture Strategy."
: Identify key threats like customer concentration or market cyclicality and suggest mitigation strategies.
Copy this checklist into your preparation notes to ensure your materials match institutional standards before your interview. Model Mechanics
The Emperor has no clothes, Elias thought. But he’s wearing a very expensive watch. Model a "management case" vs
If you are just beginning to prepare for these interviews, I can provide a more in-depth breakdown of how to build an LBO model from scratch, or give you tips on how to prepare for the 'why private equity' question. Would that be helpful? Private Equity Case Study: Example, Prompts, & Presentation
If the case requires a written deliverable, it generally includes these core sections: Private Equity Case Study: Example, Prompts, & Presentation
In a 3-hour case study, you may need to allocate purchase price. If you buy a company for $500M with a book equity of $100M, you create $400M of goodwill. You must amortize identifiable intangibles (customer relationships over 5–7 years). This non-cash expense lowers net income, which lowers cash flow to pay debt.
What happens if EBITDA drops 20%? What happens if you sell at a lower multiple?
: Build a basic LBO model using the ASBICIR method: Assumptions, Sources & Uses, Balance Sheet, Income Statement, Cash Flow, Interest, and Returns .