Steadily preparing for 2027 On-Cycle - How to prep technicals from MBB?
would love some advice on this. am preparing my diligence experience in-depth so that I can talk about these at length. feeling good on modeling (level 4 from scratch). But the main thing worried about is case studies / technicals. Could someone shed some insight on what these case studies / technicals will look like? Thank you, don't have a lot of frame of reference so this forum is extremely helpful!
When preparing for 2027 On-Cycle recruiting, especially transitioning from MBB to private equity or other high-finance roles, here’s what you need to know based on the most helpful WSO content:
1. Case Studies: What to Expect
Case studies in private equity interviews are designed to test your ability to analyze businesses, assess investment opportunities, and think critically. Here’s what they typically involve: - LBO Modeling: You’ll likely be asked to build a leveraged buyout (LBO) model from scratch. This includes projecting financials, calculating returns (IRR, MOIC), and making assumptions about debt structures. - Investment Memos: Some firms may ask you to write a short investment memo summarizing your analysis and recommendation. - Qualitative Analysis: Be prepared to discuss the qualitative aspects of a deal, such as market trends, competitive positioning, and management quality. - Mock Deal Process: You might be given a case where you act as the investor, analyzing a company and deciding whether to invest.
2. Technicals: Key Areas to Master
Private equity technicals are more advanced than MBB consulting interviews. Here’s what to focus on: - Accounting: Be fluent in the three financial statements and how they link together. Know how changes in one statement affect the others. - Valuation Techniques: Master DCF, comparable company analysis, precedent transactions, and LBO valuation. - LBO Modeling: This is the bread and butter of PE interviews. Practice building models under time constraints and understand the key drivers of returns. - Advanced Topics: Be ready for questions on working capital, deferred taxes, purchase price allocation, and capital structure optimization.
3. How to Prepare
4. Tips for Success
If you’re already feeling good about modeling, you’re ahead of the curve. Just make sure to refine your case study approach and technical depth. For more detailed resources, check out the WSO PE Interview Course or similar threads on the forum. Good luck—you’ve got this!
Sources: Case study interview for MBB consulting - 24 of my best tips on how to get in, Q&A: MBB to MM PE, Q&A: MBB -> Strategy at Media Company, What’s Harder? MBB or EB/BB
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I'd spend your time prepping for what you could get on average and not stress / focus too much on the extreme scenarios, best of luck!
Median interview is probably ~level 3; average is between level 3 and 4 (largely brought up by value-oriented firms); max is level 5+ (extremely rare; distressed or more value investors primarily for anything level 5 or level 5+), min is level 2 (no B/S). Modelling tests in PE on-cycle interviews that go to even level 4 PF is super rare mechancially (would say sub 15% conservativally). Think of case studies as basically modelling tests that also require you to formulate a view on the investment directly and then talk about it. This is what people mean by modelling tests are check-the-box.
IMO the hardest thing by far is case studies where you have very little info / have to make own projections. Even if mechanically they are level 2 or 3 PF ; they are way harder to do in the time frame than a level 5 PF test.
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