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Clara

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6

Anyone had a case interviewed with following topics? Precedent Transaction, Leverage Buyout,Comparable Company Analysis

I am just wondering how much corporate finance-valuation knowledge we should be facing in the case interview. Valuation techniques (Cost of Capital, Comparable Company Analysis, Precedent Transaction Analysis, Discounted Cash Flow analysis, and Leverage Buyout analysis)

I am just wondering how much corporate finance-valuation knowledge we should be facing in the case interview. Valuation techniques (Cost of Capital, Comparable Company Analysis, Precedent Transaction Analysis, Discounted Cash Flow analysis, and Leverage Buyout analysis)

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Book a coaching with Clara

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Hello!

I would not worry to much about this. Indeed makes sense to have a look at valuation techniques, but more as an exercise inside a more conventional problem.

Particularly for MBB, it´s pretty clear where to focus:

1. Profitability cases- basic profitability framework.

2. Idea generation cases: for any specif issue

3. Growth cases: market penetration, new product launch, product mix change, etc.

4. Pricing cases

5. M&A cases

6. Valuation cases

7. Value chain cases

Hope it helps! Best,

Clara

Hello!

I would not worry to much about this. Indeed makes sense to have a look at valuation techniques, but more as an exercise inside a more conventional problem.

Particularly for MBB, it´s pretty clear where to focus:

1. Profitability cases- basic profitability framework.

2. Idea generation cases: for any specif issue

3. Growth cases: market penetration, new product launch, product mix change, etc.

4. Pricing cases

5. M&A cases

6. Valuation cases

7. Value chain cases

Hope it helps! Best,

Clara

Book a coaching with Francesco

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Hi Gurkan,

It depends on the company, but normally for generalist roles:

  • You should know the three traditional valuation methods (DCF, comparables, sum of the parts)
  • You need to know that cost of capital impacts DCF and how
  • You don’t need to know LBO models

In most cases, the math part will be limited to a simple perpetuity formula, or to apply a multiple (eg EV/EBITDA or P/E) to the EBITDA or Earnings provided by the interviewer.

Things change if you apply for a specialist role related to corporate finance. In that case, you will normally be tested in-depth on valuation.

Hope this helps,

Francesco

Hi Gurkan,

It depends on the company, but normally for generalist roles:

  • You should know the three traditional valuation methods (DCF, comparables, sum of the parts)
  • You need to know that cost of capital impacts DCF and how
  • You don’t need to know LBO models

In most cases, the math part will be limited to a simple perpetuity formula, or to apply a multiple (eg EV/EBITDA or P/E) to the EBITDA or Earnings provided by the interviewer.

Things change if you apply for a specialist role related to corporate finance. In that case, you will normally be tested in-depth on valuation.

Hope this helps,

Francesco

Book a coaching with Ian

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Hi Gurkan,

While basic finance/accounting is required for casing, this level generally isn't. The concepts in general need to be understood, but the depth at which you're talking does not.

Of course, I'm speaking about a generalist role...if you're applying to a more finance/PE-based company/role AND you're applying as an experienced/expert hire you should absolutely understand how to use these concepts.

Hi Gurkan,

While basic finance/accounting is required for casing, this level generally isn't. The concepts in general need to be understood, but the depth at which you're talking does not.

Of course, I'm speaking about a generalist role...if you're applying to a more finance/PE-based company/role AND you're applying as an experienced/expert hire you should absolutely understand how to use these concepts.

Book a coaching with Gaurav

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Book a coaching with Iman

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Hi,

It really depends on what firm / role your are applying.

If you are applying to strategy consulting firm then you just need to understand the concept and basic formula (e.g. perpetuity).

However, if you apply to a corporate finance advisory in a Big 4 firm than I guess you will need quite a detail understanding of the finance - valuation knowledge.

Best,

Iman

Hi,

It really depends on what firm / role your are applying.

If you are applying to strategy consulting firm then you just need to understand the concept and basic formula (e.g. perpetuity).

However, if you apply to a corporate finance advisory in a Big 4 firm than I guess you will need quite a detail understanding of the finance - valuation knowledge.

Best,

Iman

Book a coaching with Adi

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Hi Gurkan,

Generally speaking, with the cases, any deep functional/industry knowledge is not expected. Some understanding of topics you mentiond coupled with common sense & good structuring can do the job for you. But if you can afford to learn, the more the better :).

If you are applying to boutique firms or an experienced hire role in BIG4 things can change.

I recently coached someone for BIG4 Finance Transformation & another person for BIG4 Deals case interview- both at Senior Consultant positions. Both cases were long and specific to the finance/deals topics & required prior knowledge of these areas.

So, please check details with HR on what to expect and prep accordingly.

Hi Gurkan,

Generally speaking, with the cases, any deep functional/industry knowledge is not expected. Some understanding of topics you mentiond coupled with common sense & good structuring can do the job for you. But if you can afford to learn, the more the better :).

If you are applying to boutique firms or an experienced hire role in BIG4 things can change.

I recently coached someone for BIG4 Finance Transformation & another person for BIG4 Deals case interview- both at Senior Consultant positions. Both cases were long and specific to the finance/deals topics & required prior knowledge of these areas.

So, please check details with HR on what to expect and prep accordingly.

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