Knowing your deals inside out
Hey guys, many people say that you should know the deals you have worked on cold. From am interview standpoint, please can you list down the MOST IMPORTANT points whilst walking the interviewers through my deal experience
Size, background of sellers (strategic divesting? family owned? secondary from other fund? why is this deal on the market), business model (how do they make money - be very very clear on this. This is where most business risks come from). Why are they better than their competitors (or worse. Depends). You should know topline, gross and Ebitda margins, leverage levels, size of balance sheet, working capital cycle length, some return ratios like ROCE. How do you expect this deal to make money (e.g. prices have to continue rising? deleveraging?) You should be able to articulate top 4-5 BIG risks. Valuation, (if IB, where did you start at, what did you ultimately get). The second section should be what was YOUR contribution to the deal (try to show you worked independently on workstreams with minimal supervision). Hope this is helpful.
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