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    BIWS LBO Case Study - VF

    Uploaded by

    Loïc Halleux
    The document provides instructions for a take-home case study assignment for an interview at a private equity firm. The applicant is asked to screen sectors to identify an acquisition target between $500 million and $2 billion, build an LBO model with cash flow projections and debt schedule, and create a 15-20 slide PowerPoint addressing investment recommendation, market analysis, turnaround strategy, valuation, LBO model outputs, and risk factors. The applicant has 7 days to complete the assignment and PowerPoint and should be prepared for a 30-minute Q&A. The score will depend primarily on the strength of the investment recommendation and support for financial projections.

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    BIWS LBO Case Study - VF

    Uploaded by

    Loïc Halleux
    143 views2 pages
    The document provides instructions for a take-home case study assignment for an interview at a private equity firm. The applicant is asked to screen sectors to identify an acquisition target between $500 million and $2 billion, build an LBO model with cash flow projections and debt schedule, and create a 15-20 slide PowerPoint addressing investment recommendation, market analysis, turnaround strategy, valuation, LBO model outputs, and risk factors. The applicant has 7 days to complete the assignment and PowerPoint and should be prepared for a 30-minute Q&A. The score will depend primarily on the strength of the investment recommendation and support for financial projections.

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    BIWS LBO Case Study_vF

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    The document provides instructions for a take-home case study assignment for an interview at a private equity firm. The applicant is asked to screen sectors to identify an acquisition target between $500 million and $2 billion, build an LBO model with cash flow projections and debt schedule, and create a 15-20 slide PowerPoint addressing investment recommendation, market analysis, turnaround strategy, valuation, LBO model outputs, and risk factors. The applicant has 7 days to complete the assignment and PowerPoint and should be prepared for a 30-minute Q&A. The score will depend primarily on the strength of the investment recommendation and support for financial projections.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    143 views2 pages

    BIWS LBO Case Study - VF

    Uploaded by

    Loïc Halleux
    The document provides instructions for a take-home case study assignment for an interview at a private equity firm. The applicant is asked to screen sectors to identify an acquisition target between $500 million and $2 billion, build an LBO model with cash flow projections and debt schedule, and create a 15-20 slide PowerPoint addressing investment recommendation, market analysis, turnaround strategy, valuation, LBO model outputs, and risk factors. The applicant has 7 days to complete the assignment and PowerPoint and should be prepared for a 30-minute Q&A. The score will depend primarily on the strength of the investment recommendation and support for financial projections.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    LBO Modeling Test and Investment Recommendation – Take-Home Case Study (7 Days to

    Complete)

    You are interviewing at First Consumer Capital, a U.S.-based middle-market private equity firm
    that invests domestically in the consumer, media/telecom, and software sectors.

    The firm aims to find undervalued companies with stagnant or declining core businesses that
    can be acquired at reasonable valuation multiples and then turn them around via restructuring,
    divestitures, and add-on acquisitions.

    The firm’s average deal size is between $500 million and $1 billion (Enterprise Value), but it can
    go as high as $2 billion for the right opportunity.

    Using all the available tools at your disposal (Capital IQ, FactSet, etc.), screen these sectors for
    appropriate acquisition candidates and select the best one.

    Then, build an LBO model based on reasonable assumptions for the purchase price, debt, cash
    flow projections, and exit.

    You should use the company’s historical performance and industry/market research to build
    the projections.

    You do not need to build a full 3-statement LBO model; cash flow projections with a debt
    schedule and returns calculations are fine.

    When you’re finished, draft a short PowerPoint presentation (15-20 slides) that addresses the
    following questions:

    1. Investment Recommendation – Would you recommend acquiring this company in a


    leveraged buyout? What are the key quantitative and qualitative factors?

    2. Market – How would you describe this company’s market and the company’s position in
    it? What are the major growth opportunities and competitive threats?

    3. Strategy – What is your proposed turnaround or transformation strategy, and what


    evidence do you have that it might be feasible?

    4. Valuation – Please address the expected premium and multiple you expect to pay for
    this company and how it compares with the company’s past trading history and
    comparable companies and transactions in the sector.

    1 of 2 https://breakingintowallstreet.com
    5. LBO Model – Explain the output of your LBO model, including the IRR and MOIC in
    different cases or under different purchase and exit conditions. Your model should also
    address the possibility of losing money in different scenarios.

    6. Risk Factors – What are the key risk factors in your proposed deal, and how could you
    mitigate them?

    You have seven (7) days to complete everything above and submit your Excel file and
    PowerPoint presentation.

    You should be prepared to present your findings to the investment committee and answer
    questions about your work in a 30-minute Q&A session afterward as well.

    Note that your score will be determined primarily by the strength of your investment
    recommendation and support for your numbers.

    You will not earn extra points by submitting an extremely complex model or one with many
    bells and whistles. Focus on selecting a good acquisition candidate, understanding the market,
    and using outside research to support your numbers.

    2 of 2 https://breakingintowallstreet.com

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