Calculate the Internal Rate of Return (IRR) and Multiple on Invested Capital (MOIC). Target a 20-25% IRR or a 2.0x+ MOIC . 3. Formulate the Investment Thesis
Your downside case should test the business severely (e.g., severe revenue decline). If your downside scenario still yields a 20% IRR, your model is unrealistic.
Revenue growth, EBITDA margins, working capital requirements, and capital expenditure (CapEx). private equity interview case study pdf
Private equity case studies generally fall into three categories. Knowing the format helps you manage your time effectively. The 3-Hour In-Office Test
Commercial guides often base their practice cases on real interview exercises but change the target companies to teach broader concepts. Calculate the Internal Rate of Return (IRR) and
Model different debt tranches (e.g., Senior, Subordinated). Working Capital Adjustments: Refine cash flow modeling. 2. Key Elements to Include in Your Investment Memorandum
Essential Guide to Private Equity Case Studies | PDF - Scribd Formulate the Investment Thesis Your downside case should
PE firms typically use one of three formats depending on the role and fund size: The Paper LBO (30 Minutes):