Buy side ER case study

For a buy-side equity research case study, especially for a healthcare-focused team, here's what you can expect and how to prepare:

What to Expect

1. Case Study Structure:

   • Likely, you'll analyze a healthcare company and build a financial model (3-statement model and/or DCF).
   • You may need to develop an investment thesis, including key drivers, risks, and valuation.
   • A presentation (likely in PowerPoint) to summarize your findings and defend your investment recommendation.

2. Key Focus Areas:

   • Industry Knowledge: Understanding healthcare-specific metrics (e.g., pipeline analysis, regulatory milestones, patent cliffs, etc.).
   • Valuation Skills: Proficiency in DCF, comparable company analysis, and precedent transactions.
   • Critical Thinking: Ability to identify key drivers and risks for the company.
   • Presentation Skills: Clear and concise communication of your investment thesis.

3. Time Management:

   • With only 4 hours, you'll need to balance time between modeling, analysis, and preparing your presentation.

How to Prepare

1. Technical Skills:

   • Financial Modeling: Practice building 3-statement models and DCFs. Use WSO's DCF Modeling Training - Free Guide and Financial Modeling Templates to refine your skills.
   • Excel Proficiency: Be comfortable with advanced Excel formulas (e.g., Index Match, sensitivity analysis).

2. Healthcare Industry Knowledge:

   • Research common valuation metrics and drivers in healthcare (e.g., EV/EBITDA, P/E, pipeline valuation).
   • Understand the regulatory environment, clinical trial phases, and competitive landscape.

3. Investment Thesis Development:

   • Practice structuring an investment case:
     • Thesis: Why invest in this company?
     • Catalysts: What will drive the stock price?
     • Risks: What could go wrong?
     • Valuation: Is it undervalued or overvalued?

4. Presentation Skills:

   • Use WSO's Presentation Templates to practice creating concise and visually appealing slides.
   • Focus on storytelling: Start with your recommendation, then back it up with data and analysis.

5. Mock Case Studies:

   • Simulate the 4-hour case study by practicing with real companies. Choose a healthcare company, build a model, and create a presentation within the time limit.

Resources to Use

• WSO Financial Modeling Resources:
  • 3 Statement Model and DCF Modeling Training - Free Guide.
  • Financial Modeling Templates (.xlsx) for practice.
• Interview Questions:
  • Review 101 Investment Banking Interview Questions and Private Equity Interview Questions for technical prep.
• WSO Forums:
  • Explore threads on buy-side case studies and healthcare-specific insights.
• Industry Reports:
  • Use WSO's Industry Reports to deepen your understanding of the healthcare sector.

Final Tips

• Stay Organized: Allocate time wisely—spend ~2 hours on modeling, ~1 hour on analysis, and ~1 hour on the presentation.
• Be Concise: Focus on the most critical aspects of the company and avoid overloading your presentation with unnecessary details.
• Defend Your Thesis: Be prepared to answer questions about your assumptions, valuation, and risks.

Good luck! Crush it like a pro! 🐒

Sources: Case study interview for MBB consulting - 24 of my best tips on how to get in, Q&A: MBB -> Strategy at Media Company, Private Equity Interview Questions - 13 Topics to Know, Case study interview for MBB consulting - 24 of my best tips on how to get in