How different are these case studies in Private Equity?

PrivateEquity
New answer on Oct 14, 2019
1 Answer
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Anonymous A asked on Oct 14, 2019

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Vlad
Expert
replied on Oct 14, 2019
McKinsey / Accenture Alum / Got all BIG3 offers / Harvard Business School

Hi,

PE interviews are different from consulting and are usually much more technical and detailed in financial part. Usually, they give you much more time to prepare and do the model on paper. Depending on the company you'll need to:

  • Find the relevant information in P&L, Balance sheet, CF statement
  • Do the simplified valuation using NPV: calculate cash flows and make assumptions about growth rate and discount rate
  • Do the valuation using comps - you'll have to explain which comps you will use and why
  • Do the valuation of the synergies
  • Play with different scenarios (e.g. how the stock-price will change if the deal terms leak into media, or how should the companies behave in a bidding process)

Best!

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Diane on Apr 18, 2020

Thank you!

Vlad gave the best answer

Vlad

McKinsey / Accenture Alum / Got all BIG3 offers / Harvard Business School
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