Bain Capital Credit SA First Round
Anyone have ideas of what this will look like and how best to prepare? I understand it would be pretty similar to a typical case. Any good particulars to know going in?
Anyone have ideas of what this will look like and how best to prepare? I understand it would be pretty similar to a typical case. Any good particulars to know going in?
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Career Resources
Are you baiting or you got a first round?
No bait lol, can confirm.
Bump, any insights?
Did first round last year so I can give some insight assuming process is still the same.
It was a 30-45 minute call where we first began with the typical behavioral questions (Why Bain Capital, What are your interests, tell me about yourself, etc.). Then I was given a market sizing question, which led to determining if a company would be a good acquisition or not. It was based on a real Bain Capital acquisition (if I remember correctly, Chuck E. Cheese).
I first had to determine the market value for Chuck E. Cheese, and then determine if Chuck E. Cheese has a profitable business model or not, and if Bain capital should invest in them.
I’ll be happy to answer any follow up questions you may have. I can also speak on the super day process as well. Good luck!
This is awesome! Will definitely rep the market sizing stuff, seems that that is key. Anything good to focus on what makes the business profitable or tips with the sizing?
I will be sure to followup in the case of a super day, really appreciate it!
I believe it started out as something like “forecast the amount of revenue Chuck E. Cheese makes annually.” (The market sizing part)
From there I was asked something along the lines of “if I wanted to acquire Chuck E. Cheese, what factors would I consider?” And then I was given some data, and we walked through the case in that sense. I was given things such as annual growth rate, operating costs, revenues, etc.
There’s nothing in particular that you would need to know beforehand besides knowing how to go through cases. Similarly to any MBB case, if you are able to tackle consulting cases and know basic financial terminology, you’ll do fine. Good luck!
does anyone know how many people make it past the first round to the superday and how many offers go out?
There were less than 5 people on my superday. Not sure how many offers go out but intern classes tend to be fairly small
There were less than 5 people on my superday
Bain Capital Credit Interview Prep
1) Read loan market updates (weekly/Q) - LCDcomps.com / LevFin Insights (LFI)
2) Loan products (RC/TLA/1L TLB/2L TL/Unitranche) - get comfortable distinguishing btw lender/investor, general characteristics
3) Direct Lending vs. Broadly Syndicated - Execution Strategy - know the diff considerations from borrower perspective
4) Underwriting Fees & Flex - LBO: RC / 1L TLB / 2L TL. Typical fees and flex, normal market:
Bain Credit - also acts as Underwriter in say an M&A/LBO deal say that Bain is also the Sponsor to- gets underwriting fees (why not?). So it may not hurt to know that. look thru my comments thread I detailed fees and flex somewhere. It might be in 1 of these 2 links actually:
https://www.wallstreetoasis.com/forums/tla-vs-tlb-maturity-and-leverage#comment-2071053
https://www.wallstreetoasis.com/forums/oid-in-leveraged-loans
Hit me up if you want me to send you anything to prep. Good opportunity - make it count.
DM'd you
Great material shared by Loanboy043 above. Forgot to mention that it will be very beneficial to understand the ins and outs of credit/debt, as well as doing research on the type of debt structuring Bain Capital is known for. Definitely try to exhibit this knowledge during the case interviews
For risks/mitigants aka Credit Strengths/Weaknesses, see Moody's and S&P rating action reports (free - I suggest creating a login).
Here's S/W from Moody's and S&P for eResearch Technologies - Nov-19 (B/B3),
Capital Structure
RC/1L/2L TL structure
RC $200 / 5yr
1L TLB $1,155 / 7yr
2L TL (Priv Placed) $395/ 8yr
Credit & Operating Statistics
EBITDA $210
5.5x / 7.4x leverage
Strengths - Moody's
1) significant customer concentration (albeit across a number of different clinical trials),
2) strong market position in the niche electronic based clinical outcome assessment market,
3) solid growth prospects driven by favorable industry fundamentals,
4) solid EBITA margins
5) high revenue visibility provided by contract backlog.
6) meaningful growth in the backlog in the last 6m indicates that the company has largely overcome the operating challenges
7) revenue growth coupled with cost saving initiatives will drive earning expansion
a) Moody's projects will reduce Debt/EBITDA to <7.0x in 2020
Weaknesses
1) very high financial leverage - PF Moody's Adj. Debt/EBITDA: 7.9x
2) elevated financial risk associated with private equity ownership evidenced by aggressively high initial debt levels following the proposed LBO
3) aggressive track record of growth through debt-funded acquisitions.
4) significant customer concentration (albeit across a number of different clinical trials)
5) risk that larger better capitalized companies could choose to pursue developing their own electronic clinical outcome assessments.
6) recent revenue declines related to integration of the 4 recent acquisitions, to extend into early 2020.
Strengths - S&P
1) moderate customer concentration (top 2 customers account for 15% of its revenue, albeit across mullple individual studies),
2) revenue growth of ~11% in 2020 on
3) strong and improving bookings and
4) favorable industry dynamics following revenue declines in 2019 due to plaorm integraton issues.
5) We expect strong growth in the electronic clinical outcome assessment (eCOA) industry
6) expansion in other areas as management seeks to grow its new Imaging and Digital Patent segments
7) maintain EBITDA margin of 30% in 2020
8) $30-$40 of FCF in 2020
Weaknesses - S&P
1) small scale
2) specialized focus on providing eCoa, imaging, cardiac safety, and respiratory services to large pharma companies and contract research organizatons (CROs) for clinical trials.
3) moderate customer concentration (top 2 customers = 15% of revenue, albeit across multple individual studies),
which makes it
4) sensitve to industry, regulatory, or key
customers shis.
5) very high leverage, which we expect to be around 9x for 2019
6) limited history of generatng material FCF
7) risk it will underperform base case scenario
Triggers - Upgrade/Downgrade
Upgrade
S&P
1) consistently strong revenue growth
2) free cash flow of $30 million or more.
Moody's
1) meaningful profitable revenue growth
2) commitment to less aggressive financial policies, such that
3) Debt/EBITDA is sustained <6.0x
4) FCF/Debt is maintained: >5%.
Downgrade
S&P
1) revenue growth is anemic
2) improvement in margins fails to meet our expectatons such that
3) FCF to debt will fall below 2% b/c of
a) integraton issues,
b) a drop in bookings,
c) increasing competton,
d) contnued high restructuring, integraton, and transacton costs,
e) or acquisitons or debt funded dividends that raise the company's cash interest expense
Moody's
1) operating performance deteriorates,
2) FCF weakens
3) does not reduce leverage
4) Liquidity deterioration,
5) Aggressive financial policies or
6) EBITA / Interest: <1.25x
Any offers out yet?
Offers out?
I saw on linkedin that someone accepted an offer on friday...not sure how many they've given out. I had my superday this past friday and haven't heard anything yet
Lol I think I saw the post you are referencing, I have yet to hear but have heard definitely by the 9th, still not sure why it has taken so long.
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