HL M&A Case Study
Hi all, recently received a case study for a HL modeling exam. Was just curious if anyone has done it before or a similar one for HL. I hear its a three statement model so I'm hoping it's relativley straightforward, but any guidance / information here would be greatly appreciated!
Based on the most helpful WSO content, here’s what you need to know about similar case studies and modeling exams:
Three-Statement Model Focus: HL case studies often involve building a three-statement model. While it may seem straightforward, the challenge typically lies in ensuring logical assumptions, balancing the balance sheet, and integrating the income statement, cash flow statement, and balance sheet seamlessly.
Time Management: Many users have highlighted that time constraints are a significant factor. For example, in similar tests like the Oaktree modeling test, candidates were required to build a three-statement model and an LBO in just one hour. This suggests that efficiency and prioritization are key.
Logical Assumptions: Keep your assumptions simple and logical. As one user mentioned, their typical three-statement model covered everything below the income statement in about 100 lines, including key metrics like ROIC. Avoid overcomplicating the model unless explicitly required.
Key Metrics and Drivers: Focus on building a robust income statement with thoughtful revenue and cost builds. Highlight key metrics such as EBITDA, unlevered free cash flow, and other relevant financial indicators.
Preparation Resources: If you’re looking to sharpen your skills, consider WSO’s financial modeling resources, such as the Modeling & Valuation Bootcamp or the Private Equity Master Package, which include detailed training on three-statement models, LBOs, and more.
Practice: If you have access to old modeling tests or templates, practice balancing the balance sheet and refining your assumptions. This will help you avoid common pitfalls like incorrect margin assumptions or unbalanced statements.
Remember, the goal is not just to complete the model but to demonstrate your ability to understand the business, identify key drivers, and make sound assumptions. Good luck!
Sources: Help with 3-Statement Model Test, Seeking advice on Corporate Banking modeling, Citadel (Surveyor) Case Study/Modeling Test, 2-hour Modeling Test for HF (Fundemental Equities) - What to expect?, Symphony Technology Group - Interview
Which group? It’s group specific typically
It’s actually for their M&A group not a coverage group. Heard team is super small.
Did one for a coverage group recently that was just a 3 statement with LBO. The model itself was quite straightforward; I'd say around a Peak Frameworks level 3 test.
which group and was it templated? 3hrs?
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