Anyone willing to share a PE interview case study?

Looking for interview case studies for PE where a CIM is given and you have to build LBO and talk about why it would/wouldn't be a good investment. I didn't see anything like this in the WSO PE course so I'm wondering if anyone would be willing to share any materials they have - if so, could you PM me and I could provide a personal email? Thanks in advance

Comments (35)

 
May 14, 2020 - 2:28pm

Bump - going through the WSO PE course now and have heard the CIM/LBO combination if the new way going forward

Array
 
Aug 14, 2020 - 9:56am

Lol can't tell if this is a joke or not but would also queue up for cases

Array

 
Most Helpful
May 21, 2020 - 8:33am

Thanks! That's a good tip but how can I check myself? On one of the PE case study tests I was given CIM with no peers, no precedent transactions and no comps - i only had 3 year management projection. The valuation of such company could be anything to me - depending on how I project revenues (there was also no Balance Sheet so I had to guess Capex and NWC). Not sure how to approach this - valuation could be anything between 5x and 20x because as it was growth story I could project revenues as I pleased.

So my question is - how to know if you did it right? I mean I can do 5 of such LBOs per day but what if I have wrong approach / same mistakes in each of these LBOs?

Appreciate any tips.

Also - i didn't get the offer for the above mentioned PE I did case study for - up until today I have no clue what I did wrong...

 
  • Business School in PE - LBOs
May 21, 2020 - 10:08pm

Look at the cim case, haircut it and make sure it ties to industry growth rates/historical growth which should be in the cim, assume reasonable leverage based on industry cyclicality, company size etc (4-7x). Back solve to like a 20% irr and there you go, you have your price, take a 1-1.5x haircut on exit multiple. From there you can adjust up or down based on views of company/industry quality like is this co highly defensible, the market leader etc maybe I can underwrite to 16-17% irr and pay a bit more. If they don't give capex, did they give d&a? just assume d&a = capex

  • 3
Start Discussion

Popular Content See all

IB Sucks. I'm out
+67IBby 1st Year Analyst in Investment Banking - Generalist">Analyst 1 in IB - Gen
IB is not intellectually challenging
+54IBby Intern in Investment Banking - Mergers and Acquisitions">Intern in IB-M&A
Janet Yellen - Unrealized Capital Gains Tax. WTF
+27OFFby 1st Year Analyst in Investment Banking - Generalist">Analyst 1 in IB - Gen
VP Lying
+23IBby Prospective Monkey in Investment Banking - Mergers and Acquisitions">Prospect in IB-M&A

Total Avg Compensation

January 2021 Private Equity

  • Principal (7) $694
  • Director/MD (15) $627
  • Vice President (58) $366
  • 3rd+ Year Associate (60) $272
  • 2nd Year Associate (117) $245
  • 1st Year Associate (251) $224
  • 3rd+ Year Analyst (23) $162
  • 2nd Year Analyst (57) $138
  • 1st Year Analyst (164) $118
  • Intern/Summer Associate (18) $71
  • Intern/Summer Analyst (179) $59

Leaderboard See all

1
LonLonMilk's picture
LonLonMilk
98.5
2
Jamoldo's picture
Jamoldo
98.4
3
Secyh62's picture
Secyh62
98.3
4
CompBanker's picture
CompBanker
97.9
5
redever's picture
redever
97.7
6
frgna's picture
frgna
97.6
7
Addinator's picture
Addinator
97.5
8
NuckFuts's picture
NuckFuts
97.5
9
bolo up's picture
bolo up
97.5
10
Edifice's picture
Edifice
97.5