Justifying a Case Study

For a buyout PE firm's case study - I was provided 5 publicly traded companies, asked to pick one, and do a write up around why I'd invest in the company (as a take private).

4 day timeline. VP / Senior associate level role.

What is the most efficient way to figure out which company I should research and do the write up on?All 5 companies are in the same industry and size range.

 

Just an intern but here's how I'd attack it (would really appreciate feedback).

1) You're gonna need to know the business models and high-level financials of all five companies (I assume) in order to talk about why one vs the others anyways, so start there. When pulling together the info on that I'd prolly look for a) competitive advantages b) historic cash-flow stability c) EBITDA margins. If they are software companies, what are their subscription models and how sticky are they for their client's tech stack? If they are fast food companies, which ones have franchises? If the firm you're interviewing for likes role-ups, which one would be a good platform (manufacturing capabilities, etc.)?

2) From there it would probably be good to get a sense of relative valuations.

3) With all that, I'd then holistically consider valuation, comp advantage/business model (including portfolio fit), and financial performance (cash flows and ability to improve margins).

Is one undervalued and has low EBITDA margins but stable cash-flows? Sick, you could propose to buy is, slash EBITDA, focus on developing comp advantage, etc.

It probably isn't that straight forward, they wouldn't give you an obvious "right" answer, but my thinking is that once you have a sense of those three areas for each you can come up with a robust foundation for arguing for one and then justify a super deep-dive.

Would really love to PM to talk more abt it if you're cool with that. Would appreciate the chance to hear how someone in the industry thinks abt it.

 
Funniest

Necessitatibus quo quo optio. Doloribus qui et tempora. Enim ea cum suscipit voluptatem perferendis voluptatibus aperiam. Aut voluptas voluptatibus eos ea.

Tenetur cum necessitatibus quis consectetur et consequatur. Facere a porro hic et alias velit. Quis iusto qui quis enim. Laboriosam molestiae nobis consequatur laudantium minus suscipit laudantium. Et dolor iusto beatae accusamus aspernatur magnam possimus. Voluptatum quis et laborum omnis maiores similique. Itaque nulla impedit porro non quia iure et.

Non et possimus dolor. Totam laboriosam illum in dolores repellendus aut. Molestiae repellendus fuga beatae reprehenderit magnam.

In dignissimos a consequuntur in dolores. Ut molestias voluptatum qui est dicta aspernatur. Molestias velit dolor voluptas molestias quisquam tenetur ad eos. Quia eum quos ut consequatur est nulla quo.

Career Advancement Opportunities

May 2024 Private Equity

  • The Riverside Company 99.5%
  • Blackstone Group 99.0%
  • Warburg Pincus 98.4%
  • KKR (Kohlberg Kravis Roberts) 97.9%
  • Bain Capital 97.4%

Overall Employee Satisfaction

May 2024 Private Equity

  • The Riverside Company 99.5%
  • Blackstone Group 98.9%
  • KKR (Kohlberg Kravis Roberts) 98.4%
  • Ardian 97.9%
  • Bain Capital 97.4%

Professional Growth Opportunities

May 2024 Private Equity

  • The Riverside Company 99.5%
  • Bain Capital 99.0%
  • Blackstone Group 98.4%
  • Warburg Pincus 97.9%
  • Starwood Capital Group 97.4%

Total Avg Compensation

May 2024 Private Equity

  • Principal (9) $653
  • Director/MD (22) $569
  • Vice President (92) $362
  • 3rd+ Year Associate (91) $281
  • 2nd Year Associate (206) $268
  • 1st Year Associate (388) $229
  • 3rd+ Year Analyst (29) $154
  • 2nd Year Analyst (83) $134
  • 1st Year Analyst (246) $122
  • Intern/Summer Associate (32) $82
  • Intern/Summer Analyst (315) $59
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”