VC/GE case studies

Based on the most helpful WSO content, here’s what you need to know about case studies and modeling tests in VC and PE processes:

1. Common Case Study Types:

   • LBO Modeling: A frequent test in private equity processes. Candidates are often asked to build an LBO model from scratch using a public company's financials (e.g., from a 10-K) and complete it within a set time frame (e.g., 90 minutes).
   • Cap Table Modeling and Term Sheets: These are more specific to venture capital processes, focusing on equity splits, valuations, and understanding term sheet clauses.
   • DCF and 3-Statement Models: These are foundational and may appear in both VC and PE processes.

2. Preparation Tips:

   • Practice with Public Data: One suggestion from WSO threads is to grab a public company’s 10-K and a research report, then build a model (e.g., LBO) from scratch. This helps simulate real-case scenarios.
   • Time Management: Many tests are timed, so practice completing models efficiently.
   • Resources: The WSO Elite Modeling Package offers courses like LBO Modeling, M&A Modeling, and Valuation Modeling, which are highly recommended for mastering these tests.

3. Sharing and Collaboration:

   • Some users on WSO forums are open to exchanging modeling cases, including prompts and Excel model answers. For example, one user mentioned being happy to exchange a modeling case but faced challenges with direct messaging.

For more detailed resources or templates, you can explore the WSO Academy or the free financial modeling lessons available on WSO.

Sources: Modeling tests/case studies to share?, For those of you who worked at a BB that has a separate modeling group (M&A), do you feel like you gain less technical skills?, Case Studies & Modeling Tests: How Exactly Are They Administered?