Private Equity Interviews - Detailed Guide, Example Case Studies + More
The task is simply to get to an IRR and discuss the returns in a short investement memo. I dont understand the question. Read the CIM and come up with operating assumptions. Use basic transaction assumptions and make an LBO. What do you mean by "basic transaction assumptions"?
Click here to get the case study prompt , and here to get the Excel file. You should always START this exercise by looking at the actual question or set of questions they are asking you:. So you can also fill in the Depreciation figure on the Income Statement. This makes the final numbers easier to calculate, since interest expense will never change and you can simply add up cash generated to get to the final cash number at the end:.
When I was interviewing, case studies were not like the ones given in consulting interviews. Luckily, I never had to do any 'on the spot' tests; i will let someone else speak to that. All my case studies gave me 3 or 4 days to complete. They'll give you any basic operating assumptions and other tidbits.