How did you talk about your deals?

When you recruited for PE—how did you talk about your deals? How did you play up the model talk and financials if you didn’t have access to the data room? Someone told me to not make numbers up. Or you will get cooked.

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Yes exactly was just about to respond. it’s literally just a sponsor PnL model(no b/s and no cfs) , DD, and some QOE reports. Really don’t know / think it’s enough because I can obv speak to operating model but no insight into leverage or other mechanics…

 

I think you're overthinking this. Interviews will focus on:

  • What does the company do?
  • What's the 'rough' size (revenue, gross margins, EBITDA margins, growth rate, TEV) with round numbers/generalities being totally fine given confidentiality?
  • Was it buy-side or sell-side (hopefully)? What was your role on the deal (model, buyer requests, VDR management, pitch materials, etc.)?
  • Do you think it's a good company / would you invest? Why/why not? At what valuation / how did you arrive at this valuation?
  • What was the ultimate outcome of the deal (transacted, broken process, etc.)?

If you can't answer these based on memory + the files that you mentioned above, there are bigger problems. You should be fine. 

 
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Few reasons:

  • Sell-sides do a better job of teaching the end-to-end deal process given more exposure to the longitudinal deal (versus a buy-side that's often post-LOI only, etc.)
  • The steps in a sell-side are just better aligned to where associates spend time in PE (model creation, VDR review, submitting requests, interacting with management)
  • Sell-side work (assuming your bank is actually mandated) usually goes somewhere (either successful transaction or dead deal but with experience that spans multiple months) versus buy-side doesn't always materialize in your buyer winning (if multiple parties still involved) and is often shorter in effort and duration
  • (To generalize) Buy-side work is frequently fluffier (particularly for sponsors who might just be looking to pay a tip and don't actually ask for that much support; understand that public company buy-side advising probably looks different)

I'm sure those who did IB can offer up more (or choose to disagree with me). To me, the only real benefit to buy-side is thinking like a buyer when it comes to valuation, pros/cons of a business, etc.

 

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