Case Study Presentation
For a job interview, I recently created a 15 page Private equity investment memo type presentation on a company for which I did quite a lot of primary research - I spoke with ex employees and 4 research analysts covering the co. I had a week to do it and could pick company of my choice. I now need to present it to the principals for 1.5 hour. I have some questions that I hope someone can answer:
- First, would the primary research get me quite a lot of bonus points? I would hope so! I also feel quite confident about my thesis
- presentation and the model are clean and well-laid our and error free. I want to get an idea of what covenants should I be proposing as a part of the lbo package? The co is in retail so to be conservative I have assumed 3x ebitda but if someone asks me how would I think of covenants - what do I say? How do I think through this?
- lastly isn’t a 90 min presentation a lot?? I have a feeling that this is too much time. Am I mistaken?
Pls help me a fellow WSO user out. Have a blessed day all
I don't think the primary research will really earn you any brownie points if your overall presentation falls flat.
Generally speaking, maintenance covenants no longer exist in this market... but for retail, maybe they do. 3x ebitda sounds conservative enough for a general retailer. You can back into how much quantum of debt a company can realistically incur by making some assumptions on cost of debt and where your ULFCF will be in your model. Then your leverage becomes an output and you can sensitize covenants by taking some haircut to your ebitda forecast and setting covs off that.
90 min presentation seems appropriate. Time actually flies when you're presenting a thoughtful thesis and have Q&A interjected. Be prepared to have your train of thought broken by Q&A and being able to compose yourself and continue where you left off. I've sat through dozens of case studies and they usually last 60-90 min.
Would you like to look at this presentation? I’d be very interested in getting your view. You don’t need to critique it in detailed manner?
What means there are no maintenance covenants any longer?
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