Ability to Disclose on Resume Deals in Interviews
To what extent can one disclose margins / growth / economics (hard figures) about a deal they worked on in an interview (i.e., what do you like about the business? and your response might include its superior economics)? Understand that there is a lot of sensitivity here, was wondering if best practice is to provide a range (i.e., 30-40% EBITDA margin, revenue growth in HDD%, etc.) or if you can get more specific than that (i.e., EBITDA margin of ~35%, rev growth >15%, etc.).
When discussing deals in interviews, it's crucial to balance showcasing your knowledge and respecting confidentiality. Based on the most helpful WSO content, here are some best practices:
Use Broad Ranges: Providing ranges like "30-40% EBITDA margin" or "revenue growth in high double digits" is generally acceptable. This approach ensures you don't disclose sensitive or proprietary information while still demonstrating your understanding of the deal's economics.
Avoid Specific Figures: Refrain from sharing exact numbers (e.g., "EBITDA margin of 35%") unless the information is publicly available. Specific figures can breach confidentiality agreements and reflect poorly on your professionalism.
Frame with Context: If possible, discuss the deal in terms of industry benchmarks or general trends. For example, you might say, "The company had margins and growth rates that were above industry averages, making it an attractive investment."
Focus on Qualitative Insights: Highlight what made the business compelling without relying solely on quantitative data. For instance, you could discuss competitive advantages, market positioning, or operational efficiencies.
By adhering to these guidelines, you can effectively discuss your experience while maintaining the necessary discretion.
Sources: PE interview question - If you can only know 3 things for an investment analysis?, Framework for Understanding Results, https://www.wallstreetoasis.com/forum/private-equity/thinking-like-an-investor-the-key-financial-metrics?customgpt=1, Sources and Uses: How to Find and Use Information in IBD (EBITDA example), How to talk around confidential info in deal discussions?
del
Debitis hic esse praesentium velit modi sed. Ipsa rem unde est placeat harum eos ut. Adipisci cum aliquam et numquam dolores. Autem ea aut hic voluptas nemo impedit. Officiis rerum rem in.
Assumenda perspiciatis qui facere. Quia sed rerum dolores asperiores odio repudiandae neque. Maxime consectetur nostrum dolorem expedita animi. Qui animi ut reprehenderit aspernatur.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...