Consultant-style case interview for PE firm
I'm interviewing at a firm next week, that says they'll be doing a "consultant-style case interview." The modeling test is separate, so this doesn't seem like a case interview where you're given a CIM and have to make a model and some slides.
Does anyone know how to approach this? I'm an MBB consultant, so I've done case interviews before, but I'm not sure if I should: 1) use the frameworks I did for consulting (e.g., Porter's 5 forces, 4Ps, etc.), vs what we actually do in consulting?
Any ideas for what PE firms are looking for?
Do you mind detailing the differences between casing strategies and what you “actually do” in consulting as I’m not sure how different it is?
If it’s a consultant background heavy firm (baincap, golden gate etc) then I would lean into your tangible consulting skill set. If it is a more operationally focused / growthy pe firm that likes to do “cases” (TA) then I would probably assume something more casing Interview like will be helpful as you develop a pitch for an investment (particularly helpful when outlining competitors / market opportunities)
When I was casing, I watched some video on frameworks, what I would do is I would use the framework: split the problem into 1) the stand-alone value of the target company, 2) synergies that might be realized if acquired, 3) other considerations / risks.
But in actual consulting, what we typically do is we look at things like 1) market sizing (TAM), 2) competitive dynamics, 3) growth opportunities
Since in case interviews in the past, I've always "led" with the approach, I'm not sure which one to follow.
I had one when I was back interviewing.
They gave me a CIM and then I basically had to 1) ask questions about the business and industry, in order to 2) give a conclusion on whether it looks like an interesting investment from a non-financial basis. Assuming a lot of your frameworks would work in terms of understanding the risks and merits of the investment
Got it, so none of that robotic consulting style case, where you say the information back to them, think for a few minutes, and then walk through your framework systematically?
I don't have any experience in consulting case studies, but I would try to avoid sounding formulaic. I think the general frameworks you're familiar with could be useful to you but make sure you frame them & the conclusion in a way that supports your recommendation on the company from and investor perspective.
We do cases in our interview process. Generally the point of cases is just to have a business conversation and figure out how people think. The real truth is that there is very little preparation you do for a case interviewer. Before PE I was at MBB and I hired a number of people who didn't know what a case was and were totally unprepared.
That being said, use the same approach you did for your MBB case interviews. If nothing else, having a framework calms the nerves and helps you be your best self. Being formulaic is not a problem at all.
The one key piece of advice I would give is to listen to the interviewer. If they try to take you in a direction go there no matter what your framework is.
Good luck!
I’ve got a verbal case study coming up w/ paper LBO. Any pointers for key questions to ask or ways to frame your recommendation?
My thoughts were to hit the following:
Market - size, growth, barriers to entry, cyclicality
Competitors - fragmentation, strength, NPS
Financials - Growth (rev & EBITDA), operating leverage, margins, cash flow
Customers - Concentration, retention, LTV / avg lifetime, key losses
Org Chart - Mgmt tenure, strength, salesperson B2B relationships
Nobis nisi eos maiores quo ut consectetur minus. Est itaque nesciunt nam. Suscipit est quasi asperiores qui soluta voluptates rem laudantium. Et id qui aliquid culpa est enim magnam omnis. Est et eius recusandae harum quaerat tempora.
Facilis sint eos non. Eos eveniet qui impedit alias. Eum consequuntur voluptatibus doloribus sit placeat distinctio optio quaerat. Illo tempora vitae nihil est pariatur a est atque. Dolorem sunt et nihil repellat.
Dolorem illo laudantium ut quia fuga iste deleniti. Omnis aliquid voluptas exercitationem minima id fugiat minima. Accusamus sit suscipit voluptatem sapiente occaecati quo molestiae. Amet non rerum ducimus sit quos explicabo.
Omnis nisi harum dolorum ut voluptatibus ea. Aspernatur ut impedit aut consectetur.
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...