3hr in person PC Case Study Round

Based on the most helpful WSO content, here are some insights and tips for your 3-hour in-person PC case study round:

Key Steps and Time Management:

1. Reading the CIM (1 hour):

   • Focus on understanding the key metrics such as incremental profit margins, asset base, ROIC, cash flows, and historical revenue & margin stability.
   • Note down ideas for your investment thesis and key assumptions.

2. Building the Model (1 hour):

   • Create a standalone model with projections based on the numbers in the CIM.
   • Include key elements such as:
     • Revenue growth by segment
     • Margin expansion by segment
     • Capital structure adjustments
     • Unlevered and levered IRR calculations
   • Avoid overly detailed operating build-outs if time-constrained. Instead, focus on high-level assumptions and ensure accuracy.

3. Writing the Investment Memo (1 hour):

   • Summarize your findings and recommendations.
   • Include sections on:
     • Company/industry analysis
     • Financial overview
     • Risks and mitigants
     • Further due diligence questions
   • Prepare for a debrief session where you will present your findings and defend your assumptions.

Detailed Model Expectations:

• Operating Model:

  • While detailed operating build-outs are valuable, prioritize the most critical elements given the time constraints.
  • Ensure your model includes:
  • Revenue, opex, and capex breakdowns
  • Key assumptions backed by due diligence and research
  • Simple yet accurate projections

• Investment Memo:

  • Your memo should be concise and cover all essential aspects:
  • Executive summary with thesis, returns, EBITDA, purchase price multiple, and capital structure
  • Merits and risks slides
  • "What Really Matters" slide for further diligence

Additional Tips:

• Practice:

  • Use old case studies or recent S-1 filings to practice building models and writing memos.
  • Reach out to trusted analysts for old PE modeling exams as they can be excellent practice material.

• Presentation:

  • Be prepared to discuss your model and memo in detail during the 1-hour discussion.
  • Anticipate questions and challenges to your assumptions and be ready to defend them.

By following these steps and focusing on the key elements, you can effectively manage your time and produce a comprehensive model and investment memo within the given constraints. Good luck!

Sources: PE / Buyside Modelling, Best way to read a CIM?, Citadel (Surveyor) Case Study/Modeling Test, My Path - MBA Banking Associate to PE, Life in Development - Expectations vs Reality