Case Study Timing

Based on the most helpful WSO content, if you're given three hours for an LBO case study requiring both a model and a deck from scratch, it’s generally more efficient to simplify rather than build a full three-statement LBO model. Here's why and how you can approach it:

1. Simplify the Model: Focus on the key components:

   • Cash Flow Statement
   • Debt Schedule
   • Returns Analysis (based on LTM EBITDA)

   This approach allows you to prioritize the most critical elements of the LBO, such as understanding leverage, cash flow generation, and investor returns, without getting bogged down in unnecessary details.

2. Time Constraints: A full three-statement model is typically not feasible within a three-hour window, especially when you also need to prepare a deck. Instead, allocate your time wisely:

   • Modeling (2 hours): Build a streamlined model with logical assumptions and sensitivity analyses.
   • Deck Preparation (1 hour): Create a concise presentation that highlights your investment thesis, key assumptions, valuation, and returns.

3. Key Tips:

   • Use a clean and intuitive template to save time.
   • Focus on logical assumptions and ensure your model is functional and error-free.
   • Include sensitivity analyses to showcase different scenarios and their impact on returns.

This approach aligns with advice from WSO threads, where users emphasize simplicity and efficiency under tight time constraints.

Sources: How would you approach a 4 hour case study?, Private Credit Case Study, Guide to Lateraling in 2021, Build LBO model from scratch for case study, 2-hour Modeling Test for HF (Fundemental Equities) - What to expect?