Interviewing for small shop and will have a case study (5-7 days to prepare). I understand that an LBO analysis is the norm but the job description details DCF and M&A models and capital structure analysis. Should I be focusing my studies on these and not LBO? Thanks.
Given that amount of time, I would focus on 4 valuation methods: LBO, DCF, public comps and transaction comps. If you are familiar with the industry and there are industry-specific methods that may fit, feel free to use those too. Merger models won't be all that relevant in PE unless you're looking at something like an add-on acquisition to a portfolio company. Cap structure analysis will already be incorporated into the LBO and DCF, but you may want to have explanations for your assumptions.
Thanks for the reply! I meant after the interview I will have 5-7 days to complete the case study. As of now the first interview is not scheduled (recruiter setting it up). I have zero exposure to this stuff and want to spend my time studying for the possibilities. I will definately attack the 4 you mentioned, anything else you think?
Quality over quantity - it's not about the number of different methods you use; it's about knowing them well, making sure they make sense in the given case (for example, an LBO isn't going to work for valuing a start up), and knowing how to explain them and your assumptions.
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Given that amount of time, I would focus on 4 valuation methods: LBO, DCF, public comps and transaction comps. If you are familiar with the industry and there are industry-specific methods that may fit, feel free to use those too. Merger models won't be all that relevant in PE unless you're looking at something like an add-on acquisition to a portfolio company. Cap structure analysis will already be incorporated into the LBO and DCF, but you may want to have explanations for your assumptions.
Thanks for the reply! I meant after the interview I will have 5-7 days to complete the case study. As of now the first interview is not scheduled (recruiter setting it up). I have zero exposure to this stuff and want to spend my time studying for the possibilities. I will definately attack the 4 you mentioned, anything else you think?
Quality over quantity - it's not about the number of different methods you use; it's about knowing them well, making sure they make sense in the given case (for example, an LBO isn't going to work for valuing a start up), and knowing how to explain them and your assumptions.
nvm
An LBO is a much more useful DCF. Nobody uses a plain vanilla DCF.
Blanditiis maiores vitae et magni saepe ea culpa. Sint nihil aut aut deserunt voluptas. Vero molestiae inventore ut qui voluptas facilis non. Voluptates eveniet exercitationem earum.
Nisi ipsum et ratione officia. Odio numquam voluptas eum incidunt occaecati doloremque optio. Occaecati aperiam in est ratione ea sint deleniti. Alias nemo error qui qui. Quasi quae ad eveniet neque expedita aut. Aperiam eius aut totam et. Modi eaque hic voluptates ut.
Et porro ea qui voluptas ab. Ipsam nemo porro necessitatibus voluptatem provident. Eaque quisquam amet dolor consequuntur est consequatur necessitatibus.
Aliquid quasi iusto explicabo nobis dolor earum ab. Id corporis accusamus temporibus aliquid facere omnis. Et corporis aperiam voluptatum modi cupiditate quos.
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