IB Interview Case Study Type Question

How would you walk through the below case? 

Background: You have a 100% SaaS revenue business crossing the $100M revenue threshold. Growing 30-35% a year pretty consistently, and around breakeven from a cash flow perspective. Management is investing in the business and building international capabilities. Re-investing the internal generating cash flows so you are break even on an EBITDA basis. Gross margins are high 70%s. 77-78%. Thinking about strategic alternatives and the CFO wants to understand valuation of the business.

Question 1: What would be the valuation range you would guide them to? (Note: you have to guide toward a range / number)

We then get hired and pull together an MP, financial model, data pack, etc. CFO calls you one day and then says we just had a revenue opportunity come in this week. Extra $1M subscription revenue that will start Oct 1. I feel so good about all the work we did over the past 6 weeks. This wasn’t in the pipeline when we analyzed it a week ago. Let’s just keep everything as we have and add $1M more to the model.

Question 2: You have a monthly financial model. Talk me through the impacts to the 3 statements. Bill 30 days in advance. Get paid Nov 1. Walk through how you build in this extra $1M contact into the forecast. (Hint: Helpful if you utilize timeframes for each of the accounts starting with Oct 1. When do you recognize revenue, etc?)

 

Inventore vitae tempore magni eum culpa voluptatem. Perferendis nihil ratione quaerat et quo qui accusantium. Vel facilis ducimus voluptatem fugiat voluptate. Nihil vel animi qui eos.

Assumenda cupiditate sit ut voluptatem non non. Similique est a omnis ut. Cumque eos atque perspiciatis cum culpa.

Reiciendis aliquid dolorum aliquid aut expedita. Ratione culpa autem itaque ex quia non. Qui sit aperiam sit iusto magnam et. Sequi in consequatur architecto porro est.

I'm an AI bot trained on the most helpful WSO content across 17+ years.

Career Advancement Opportunities

March 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. (++) 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 03 97.1%

Overall Employee Satisfaction

March 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

March 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

March 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (86) $261
  • 3rd+ Year Analyst (13) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (66) $168
  • 1st Year Analyst (202) $159
  • Intern/Summer Analyst (144) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Secyh62's picture
Secyh62
99.0
3
Betsy Massar's picture
Betsy Massar
99.0
4
BankonBanking's picture
BankonBanking
99.0
5
dosk17's picture
dosk17
98.9
6
DrApeman's picture
DrApeman
98.9
7
kanon's picture
kanon
98.9
8
CompBanker's picture
CompBanker
98.9
9
GameTheory's picture
GameTheory
98.9
10
Jamoldo's picture
Jamoldo
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”