Private Equity Interview Case Study Pdf [repack]

The Paper Tiger: Decoding the Private Equity Case Study PDF

In the high-octane world of Private Equity (PE) recruitment, the resume gets you the meeting, but the Case Study gets you the job.

Interview Scenario: If EBITDA is $10M, but the founder pays himself $500k below market (market rate $1M), what is the adjusted EBITDA? ($10M - $500k = $9.5M – Lower EBITDA means higher multiple, be careful). private equity interview case study pdf

Based on our review, we recommend the following: The Paper Tiger: Decoding the Private Equity Case

Financial Modeling (25-30%): Build a basic LBO model using the ASBICIR method: Assumptions, Sources & Uses, Balance Sheet, Income Statement, Cash Flow, Interest, and Returns . Clean the data (normalize working capital)

The Investment Thesis (The "Why"): Explain in 2–3 sentences exactly how this deal makes money (e.g., market consolidation, operational turnaround, or expansion into new territories).

• Clean the data (normalize working capital).
• Build a 3-statement forecast (Year 0 to Year 5).
• Tier the debt stack (Revolver, TL B, Senior Notes).
• Calculate returns (IRR, MOIC) with a sensitivity table on entry/exit multiples.

Financial Analysis & LBO Modeling (25-30% of time): Build a model that projects returns, typically targeting a 20%+ IRR or 2.0x+ MOIC (Multiple on Invested Capital).

3.2 Key Operational Metrics (PE-Specific)

• Customer concentration (>20% risk).
• Churn / retention (SaaS or subscription models).
• Unit economics (CAC, LTV, payback period).
• Maintenance vs. growth capex (inflated EBITDA if misclassified).