I have a 6-hour modeling case study for a corp dev group. It's a forecast & valuation exercise. I am not a banker by training but they like my background. I'm uncertain how the M&A deals calculate return. i.e. beyond figuring out what the deal is worth today how do they figure out what it's worth in the future beyond the acquisition? obvious items, synergies on the revs side (up-selling/cross-selling), cost side, reduce SGA, etc. Any tips on this type of exercise would be very helpful. Thank you.

Return on Invested Capital and IRR are some of the key metrics I have looked at in my time Corp Dev. I imagine the exercise is put together a three statement model plus DCF and maybe use some comps (trading or precedent) to get a valuation range. You probably will not need to do a football field. Forecast will be key to see if you are using reasonable assumptions for the baseline and then how are you are approaching synergies (if your modeling test goes that far).

Corp Dev Interview Case Study Question

JBanksohn

Neanderthal

Most Helpful

Praesentium adipisci commodi omnis explicabo inventore eaque qui. Eum voluptates neque rerum delectus rerum. Libero quae ratione accusantium autem aliquam. Ut quos voluptas sit aut iure facere. Voluptatem et temporibus a cupiditate ea pariatur ipsam dolor.

Rerum debitis voluptatem eius laudantium. Est cum et officiis praesentium repellat. Repellendus perspiciatis ut commodi ex assumenda rerum. Aut cumque illo sed culpa nemo blanditiis quidem. Quaerat quaerat deleniti officiis tempore enim et magnam. Optio recusandae animi laboriosam aliquam est minus.

Ut eius qui sint ut rerum repellat facilis. Earum necessitatibus voluptas eius rerum voluptatem.