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Case Math

PE Portfolio Strategy
New answer on Jan 04, 2022
3 Answers
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Hans asked on Jan 01, 2022
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Good case, but is it really expected to do the math in table 1 like this in like 3-4 min.?

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Hagen
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updated an answer on Jan 02, 2022
#1 Bain coach | >95% success rate | interviewer for 8+ years | mentor and coach for 7+ years

Hi Hans,

This is indeed an interesting question which is probably relevant for quite a lot of users, so I am happy to provide my perspective on it:

  • I absolutely agree with you that timing seems to be overtly tough. While I would always advise you to be prepared for literally anything and be your own toughest time keeper, this part of the case study seems to be not thought through.
  • Generally speaking, for well-rounded case studies, I would advise you to expect tough quantitative questions yet normally not questions resulting in meaningless time loss (such as calculating NPVs with the DCF method).

In case you want a more detailed discussion on how to best approach quant-heavy case studies, please feel free to contact me directly.

I hope this helps,

Hagen

(edited)

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Ian
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replied on Jan 02, 2022
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate

Hi Hans,

I agree! It's very very rare that you'll have to do a cubed equation (or even a decimal/fraction squared equation) in a real life case.

I do always encourage my candidates to be prepared for anything….but doing PV out to year 3 is probably where I would draw the line of a realistic interview :)

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Clara
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replied on Jan 04, 2022
McKinsey | Awarded professor at Master in Management @ IE | MBA at MIT |+180 students coached | Integrated FIT Guide aut

Hello!

Theory says that you need to be ready for anything. The reality of life is different, and I would bet that you almost never would get something as complicated as this. 

 

Cheers, 

Clara

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Hagen gave the best answer

Hagen

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