I have have a third-round private equity interview coming up in a week, with one of the big mid-market funds. I was expecting market sizing (I know that is very common) and LBO/valuation cases. However, I got some more information over the phone today, and I am not true what to expect;
”You will have 3 case-interviews, all will be of 45 minutes. It will probably be a mix if market sizing, LBO and operational improvements.” I then went to ask; “what do you mean by operational improvement case, never heard of it?”. He answered “you can probably google regular PE cases, just me calling it operational improvement. When we acquire companies, we want to make a difference under or ownership either on the top line, or the bottom line - or both preferably. Think along those lines and that will be fine.”
I think the market sizing and LBO will be fine, but I do not understand the operational improvement part. I have not seen such a case been given in PE interviews. Is he talking about a McKinsey-style/Victor Cheng case?
Does anyone have any idea of what the operational improvement case can contain?best,