48 hour case study
I'm doing a 48 hour case study this weekend. They've sent over a few annual reports and basically say "would you invest and why (not)?"
Can someone please let me know how detailed this model needs to be? I've only done 1 and 3 hour models.
The annual reports go into all sorts of rabbit holes around share based expenses, adjustments to prior years, hedging reserves etc. I'm inclined to simplify all of this hugely and go for a pretty standard 3-statement model - or will I look like a complete idiot and they're really expecting something huge?
3 statement and high level LBO will do. Distill it down to the key drivers and don’t go down rabbit holes unless they drive returns. Most important thing is to think through whether the investment is attractive and to think through your assumptions. Think about if you were actually an IP and the investment process - you’d really want to focus on the main levers. Only in later DD would very granular things be diligenced. You can bring up more granular items in your voiceover but no deal is done based on the complexity of your model.
reveal your user name, happy to help
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