Corp Dev case study - tips and expectations?

As part of the Corp Dev interview process (junior role, F500), I'm asked to complete a take-home case study within 24 hours. It's likely to involve some sort of modelling, and building a short investment deck (my guess is for strategic M&A?). Can anyone share their experience doing something similar, and what the best way to tackle these case studies would be? (i.e. tips, things to consider, types of modelling that would be involved etc.)

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Comments (12)

Nov 7, 2020 - 5:11pm

Expect to present a 5-7 slide deck

- Project out provided financials to build out a DCF

- Use any comps and trading multiples to put together a football field

- If you're interviewing at a public company consider putting together an accretion/dilution model to show impact on EPS just to be safe

- Make sure to have an understanding of revenue/cost synergies.

Other important slides: Industry attractiveness/outlook, product mix and potential cross-selling opportunities, how the deal affects the company's competitive positioning, and overall just having an opinion if the deal is worthwhile or not. Have a few real life data points on relevant deals that have been executed in their industry for support. You could also have a strategy consulting type of case study as well depending on the background of the current team members

Array

Nov 7, 2020 - 6:18pm

Thanks for the detailed response. It seems like it'll be more focused towards finance, since most are ex-bankers.

As for the layout of the deck, is there some kind of standardized format Companies like to see / you recommend? I'm not too familiar with preparing pitch books as I don't come from a banking background, and I can't seem to find samples for buy-side strategic M&A online.

Nov 8, 2020 - 3:09pm

Intro slide - overview of opportunity, headline valuation/deal details, investment thesis

Second slide - market data, investment thesis

Third slide - financial data/model and commentary; customer/segment data if you have it

Fourth slide - key investment considerations - opportunities, risks, etc.

Fifth slide - valuation football field, sensitivities

Appendix - valuation backup, sources and uses, pro forma financials

  • Analyst 2 in IB-M&A
Nov 7, 2020 - 10:20pm

Just curious - how do you guys do these tests? On a personal computer or your work computer? 1st year analyst here - ignore flair. 

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  • Analyst 3+ in CorpDev
Nov 9, 2020 - 2:29pm

The only thing I would add is explaining how the acquisition will fit into the company's strategy e.g. new market entered, increased market share, and what capabilities it will boost in terms of product offerings. Have a look at their competitors as well and see what they offer - will this acquisition differentiate themselves in the market? 

Think about synergies as well - it's far easier to have cost synergies than revenue but don't spend too much time on this.

A key risk to mention is integration risk.

Some more points will probably come to mind at some point so will add those later.

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