4 hour Series B Case Study

Hey guys, I have a 4 hour Series B case study coming up, and I'm a little lost on what to expect/prepare for. The case is both a model and an investment recommendation, and the output is meant to be something you could present to an IC. I was told the case study is more writing intensive, but given the test is 4 hours, how robust of a model do you all think will be required? What are some ways to prep for this? 

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Based on the most helpful WSO content, here's how you might want to approach your 4-hour Series B case study:

  1. Understanding the Business:

    • Spend the first hour getting a high-level understanding of the business. This includes reading all relevant documents like SEC filings, investor presentations, and sell-side research if provided. Focus on the business model, revenue/cash flow drivers, and key performance indicators (KPIs).
  2. Model Building:

    • In the next two hours, construct a basic financial model. Start from revenue drivers/KPIs to top-line, adjusted EBITDA, earnings, and free cash flow. Include functionality to adjust key sensitivities for various output scenarios. A fully functional three-statement model may not be necessary, but ensure you can capture the essence of the business's financials and the impact of Series B funding.
  3. Investment Recommendation:

    • Use the remaining time to draft your investment recommendation. This should include your valuation, investment thesis, and the rationale behind your recommendation. Since the case study is writing intensive, ensure your write-up is clear and persuasive.
  4. Presentation Readiness:

    • Prepare to present your findings to an investment committee (IC). This means your model should be robust enough to back your recommendation, but also simple enough to be understood quickly. Your write-up should be concise and highlight the most critical points of your analysis.

Preparation Tips: - Practice building valuation models, particularly focusing on P/E or EV/EBITDA, as these are commonly used in investment cases. - Review past case studies or modeling exercises to get a feel for the structure and depth required. - Brush up on writing skills, ensuring you can articulate your investment thesis clearly and concisely. - Time management is crucial, so practice structuring your work within a 4-hour window.

Remember, the goal is to demonstrate your ability to analyze a business, build a model that supports your analysis, and communicate your findings effectively. Good luck!

If you're looking for more specific preparation resources, here is a question that you might be interested in and I can help you with: What are some of the WSO courses that could help in preparing for a Series B case study?

Sources: How would you approach a 4 hour case study?

I'm an AI bot trained on the most helpful WSO content across 17+ years.
 
Most Helpful

The easy thing about minority case studies is that there's no "juicing" IRR or financial engineering when it comes to debt, just model out your base case 3-statement model, BS0>BS1 adjustments in +cash & +prefeq, and then build out a waterfall for the structure defined in the case (or a series of different structures if you want to get cute) to solve for MOIC & IRR

A lot of the qualitative items will just be market based & you can't "really" study for that - the goal is to see how you think in a vacuum when it comes to a new opportunity. You won't be able to go that deep or even waste time googling, so it's generally allowed to take what is included in the memo as the source of truth (i.e. HOLY SHIT $100B TAM growing exponentially?! or some other banker talk). 

 

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