PE Technicals & situational questions
Hey all,
Came across below list of PE questions that I'm not sure what the answers would be, would appreciate peeps jumping in:
-
You have accessed a data room for a company you are analyzing. You see a file that outlines, for the
past 5 years, month by month projected budget against versus actual performance. You see that,
consistently for all 5 of the years, from January to October, the business outperforms its projections.
For November and December, the company misses its budget by a large margin. What is going on? -
A company is trading at 10x, and you acquire it in a take-private LBO at 12x. You project an exit at
12x. What does this imply? -
If you could choose to have $10 million of incremental revenue, $10 million of incremental cost
savings, or $10 million of decreased working capital needs, which would you choose, and why?
o What if it was a one-time event, or a recurring event? What if it was toward the beginning or
the end of a company’s investment horizon? How would these factors change your answer? -
Suppose I am looking at a company that makes red tennis racquets and generates $100m of revenue.
If I look at the balance sheet at 12/31/2009, what are the accounts receivable?
Laborum et necessitatibus maiores doloremque qui culpa illo. Natus natus repellendus vel numquam neque.
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...