CIM case study
If you have 30 minutes to read a CIM and come up with a thesis / answer questions, what would be the best way to spend / divide up time?
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When faced with a 30-minute window to read a CIM and develop an investment thesis or answer questions, it's crucial to allocate your time efficiently. Here’s a suggested breakdown:
First 5-10 minutes: Quick Scan and Key Sections Identification
Next 10-15 minutes: Deep Dive into Critical Sections
Final 5-10 minutes: Synthesis and Thesis Formulation
This structured approach helps maximize the limited time available and ensures that you cover the most pertinent aspects of the CIM necessary for making a well-informed recommendation.
Sources: https://www.wallstreetoasis.com/forum/school/how-i-got-a-770-on-the-gmat-whitecollarandsuspenders-version?customgpt=1, Finished 1st Year at HBS - Ask Me Anything (Q&A), Private Equity: How to Analyze a CIM Effectively?, How would you approach a 4 hour case study?, Best way to read a CIM?
This is an impossibly difficult task to do well unless you have a lot of experience and generally are familiar with similar business models …. Or the CIM is only 20 pages long. Despite what the bot says above, I’d allocate the entire 30 minutes to digesting as much material as you possibly can and try to invent a thesis “on the fly” during the time between when they say “stop” and they ask you to start answering questions!
More generally, start with the executive summary to get an idea of what the business does and what are the primary sources of revenue. Spend 2 minutes on the financials to get an idea of size, margins, trends, and identify any anomalies. Go to the business overview section and read up on the critical portions of the business (at best scan quickly any materials that provide detail on portions of the business that don’t meaningfully contribute to revenue/profit — maybe one of these is the key growth opportunity). Then skip over to the industry section and get a feel for industry growth rates, size, and the competitive landscape. If you don’t have a good idea of the key merits of the business at this point, read the “investment considerations” portion of the CIM and steal whatever the banker offered!
Goodluck!
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