Restructuring/Insolvency Case Interview Question

Interview restructuring
Anonymous A asked on May 31, 2020

Hi,

I am currently preparing for a case study interview and I think it is likley it will focus on restructuring and/or insolvency. Just wondering if anyone had any advice on how to structure a case like this and any calculations or methods I should revise?

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on Jun 02, 2020
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on Jun 02, 2020
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Hi there,

It is very rare to have such a case if you are applying to typical consulting companies - If the partner you are interviewing is head of the restructuring practice, that does not necessarily mean you will get a case from that topic.

If you are super sure that the case is coming, then I would recommend practicing profitability and cost reduction cases (at the end of the day, a restructuring case is a profitability case with a bigger focus on the cost side and identifying which business units to keep vs. sold)

In terms of calculation, be comfortable around a P&L and the key ratios of a balance sheet + NPV calculations (with annuities, perpetuities, and if they are growing or not)

I hope this helps.

Khaled

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Hi there,

I recommend trying to find this in casing involving re-organisation, PE, M&A, and profitability. You might find something in this list: https://www.preplounge.com/en/management-consulting-cases?language=en&topic[]=16&topic[]=1&topic[]=17&topic[]=4&sort=real-case-desc&page=1&perPage=20

I agree with the other coaches that this topic is extremely rare and shouldn't be expected (unless you're applying to a firm that deals solely with this?).

I thinking about a case like this, consider the following:

  1. Root cause of company issues (and if they can be addressed, how?)
  2. Related to #1, why restructuring, what's the goal/objective, what issues does it purport to fix and how would the restructuring fix these systemic issues?
  3. NPV of decisions (i.e. debt re-payments, upfront restructuring costs, etc. etc.)

Fundamentally, what's the medium to long-term impact of the restructuring/insolvency, and what actions taken today make the future more manageable.

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Hello!

First of all, why are you making that assumption? It´s very very hard to know a priori.

Secondly, those cases are quite rare... is it for MBB?

In case you were right, I would try to prep with:

  • Profitability cases
  • Cost cut cases

Hope it helps!

Cheers,

Clara

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