- Elite Modeling Package
- Private Equity Interview Course
- Investment Banking Interview Course
- Venture Capital Course
- Real Estate Modeling Course
- All Courses
- Recently Active
- Top Discussions
- Best Content
- Investment Banking
- Private Equity
- Venture Capital
- Hedge Funds
- Real Estate
- Asset Management
- Equity Research
- Investing, Markets Forum
- Business School
- Fashion Advice
- Investment Banking Forum IB
FT Analyst Investment Banking Modeling Case Study
I have recently been selected to a attend a super day at a middle-market investment bank shop and they told me to be prepared for a modeling case study. The entire Super Day is only supposed to be 5 hours with two meals included and 5 interviews so I am confused as to how much time I would have to build an actual model from base assumptions. Is anyone familiar with what this could entail?
WSO Elite Modeling Package
- 6 courses to mastery: Excel, Financial Statement, LBO, M&A, Valuation and DCF
- Elite instructors from top BB investment banks and private equity megafunds
- Includes Company DB + Video Library Access (1 year)
Comments ( 33 )
- Brosef Stalin17
- Rank: Neanderthal
Two meals - 30-45 minutes each (1-1.5 hours) Five Interviews - 20-30 Minutes each (1.7 to 2.5 hours)
Remaining 1 to 2.3 hours
Are you having to present the case study?
- Rank: Monkey
They didn't say. Just said in the email to be prepared for a modeling case study and 5 30 min interviews. I did a banking internship and am prepared for ordinary technical questions but I have not done a modeling case before and would appreciate some tips/advice on what to expect since I have never had to do one yet. 1-1.5 hours does not seem like long enough to build and present a complete model.
Tips: -stay calm during, and remember that everyone else has the same amount of time as you do -do not get caught up on the small things (happens to me every time I take an addie) -for example, rather than projecting each working capital item on the BS to derive change in WC for DCF , estimate WC as a percentage of revenue (unless they specifically ask you to develop a three-statement projection model) -focus on showing that you understand modeling/ valuation conceptually
- Rank: Baboon
Maybe a paper LBO as well?
- Rank: King Kong
Urgent - IB Final Round Case Question ( Originally Posted: 12/02/2017 )
I'm working on a case for the final round with a boutique firm. I am putting together a DCF using a CIM that I was sent. In the CIM I am given a proxy for FCF using EBITDA-NWC-Capex. I am going to assume a tax rate on top of that. However, there is no mention in the financials (which are not extensive) on D&A. Should I exclude D&A from my analysis?
Also, on the balance sheet that I was given, it "excludes all cash, interest-bearing debt and other non-operating assets and liabilities". Should I assume that this capital structure has no debt?
- | Suggested Resource
300+ video lessons across 6 modeling courses taught by elite practitioners at the top investment banks and private equity funds -- Excel Modeling -- Financial Statement Modeling -- M&A Modeling -- LBO Modeling -- DCF and Valuation Modeling -- ALL INCLUDED + 2 Huge Bonuses.
if you are using EBITDA you do not need to add back D&A
- Rank: Gorilla
In this case, probably make the assumption that D&A=Capex (which is normally the case for a mature firm, but in the absence of other clues would be the best guess).
As for the second part, not so sure without looking at the assignment. Probably look at how different D/E ratios affect your WACC (cost of debt determined by interest coverage ratio and corresponding credit rating).
Hope that helps.
Thank you. I decided to find a comp company's cost of capital and add 2% onto it, since the firm I am valuating is much smaller and therefore a riskier investment
You said you are using EBITDA - Capex - NwC as a proxy for FCF , why do you need standalone D&A. Also if you're given EBITDA and op income, guess what you can solve for.
Is this a private company? Assume so since you were given a CIM and not public filings. Just get to Enterprise Value and don't make any assumptions on capital structure.
- Rank: Senior Chimp
IB Case Questions ( Originally Posted: 10/05/2013 )
Hi, I'm currently trying to get a feel for the banking industry through case competitions.
Generally, the case competitions I've been in generally involve company IPO valuations.
Generally, they want us to do a DCF valuation. I know the mechanics of them, but how does one usually determine cost of equity/cost of debt for discounting?
We are given:
Income Statement (past 2 actual years & projected 5 years) Balance Sheet (past 2 actual & projected 5), this one is incomplete, we have to plug in for cash (but it can be done) Cash Flow Statement (same timeline, but also incomplete)
Question: How do we get our unlevered cash flows from this? How do we determine what our WACC is?
Debt - look @ int rates Equity - CAPM breh then combine 4 Wacc and profit no homo
Can all of this be determined from the given statements? We cannot use outside information.
For debt - interest rates = interest payment/outstanding long term debt?
How do we determine the beta' s for CAPM ?
Sorry, very new to this.
u given market cap ?
No just those three statements , no market cap because it ' s a private company going public (i think?)
bottom line is that you need more than 3 statements to do a real WACC calculation Either they are giving you more than you realize, or you aren't expected to do a full WACC calc.
mebbe they give you comps ? in general u can just use the cost of cash/cost of debt/cost of equity structure (so costs are increasing w/ cash being cheapest) and tier them accordingly - obv u have the cost of debt so u can use that as benchmark for cost of equity comparing with dividend growth/dividends per share lol gud ?
- Kirk Lazarus
- Rank: Senior Baboon
If they give you comps , you can find a surrogate beta.
Advice Needed - Final Round IB Case Study ( Originally Posted: 11/18/2014 )
I've just been sent the instructions for a case study I need to complete by tomorrow night. It's for an IB analyst position that I am extremely excited about and would really love to land. It's fairly straightforward, but I wanted to seek out some advice on how I should go about doing this.
The assignment is to compile a list of 10 - 20 strategic buyers for a fictional client who has developed occupancy tax software to assist individuals who rent out their homes or vacation properties. This software is able to automatically calculate rental taxes and identifying reporting requirements, handling all correspondence with tax agencies and applying on behalf of individuals for the required rental and business licenses.
This is prefaced with a discussion of how companies like Airbnb and Home Away have sparked an increase in the number of people who rent out their homes and properties. It then goes on to explain how government agencies are increasingly focused on the taxes owing to them from individuals using online agencies to rent their homes or apartments. Companies like Airbnb and Home Away do not offer services to their clients regarding federal, state and county tax implications; therefore it is the responsibility of the renter to ensure they are paying the appropriate taxes.
The obvious answer here is to look towards companies like Airbnb and Home Away, but what motivation do they have to acquire the company instead of just licensing the software? If anyone has any advice on where I could look for potential strategic buyers or any other suggestions it would be greatly appreciated.
- The Stranger
I would think someone like Quickbooks/intuit makes a great deal of sense for this sort of thing. So do turbo tax, H&R block. TLDR: this is about understanding there are any number of tax/accounting software makers out there and something this specific makes sense as a add-on acquisition to complement their existing suite of products
A quick screen returned the following 30 companies that provide either accounting or financial software applications with TEV > $200 MM
• Intuit Inc. (NasdaqGS:INTU) • Sage Group plc (LSE:SGE) • Oracle Financial Services Software Limited (BSE:532466) • Misys Limited • Temenos Group AG (SWX:TEMN) • Longtop Financial Technologies Limited • Financial Technologies (India) Limited (BSE:526881) • Fair Isaac Corporation (NYSE:FICO) • Hundsun Technologies Inc. (SHSE:600570) • Advent Software, Inc. (NasdaqGS:ADVS) • SimCorp A/S (CPSE:SIM) • Tyler Technologies, Inc. (NYSE:TYL) • Net 1 Ueps Technologies Inc. (NasdaqGS:UEPS) • Fidessa group plc (LSE:FDSA) • Kingdee International Software Group Co. Ltd. (SEHK:268) • Bottomline Technologies (de), Inc. (NasdaqGS:EPAY) • s1 Corporation • Orc Group AB • Reckon Ltd. (ASX:RKN) • Silverlake Axis Ltd (SGX:5CP)
Would start with these
Awesome, this info will be very helpful. Thanks a bunch!
- Rank: Orangutan
How did this end up going?
IB post-MBA case study ( Originally Posted: 12/18/2014 )
Hey guys, looking for some knowledge here. I have been told by my HR contact at a MM IB that the next step in the process for FT MBA associate would be a case study. Has anyone got some insights on how it works for MBA associates because most of the feedback here is analysts? any tip would help ! Thx
I might be able to shed some light on the case study depending on the bank. Send me a PM if you want to discuss further.
IB Final Round Case Advice ( Originally Posted: 12/01/2017 )
I'm currrently in the final stages of interviews for a boutique IB in a space i'm very interested in and was asked to prepare a 2 page teaser and short valuation deck. I do not have any IB experience and am relying mostly on google to learn about what to include. Can anyone offer any advice/resources or know of any good examples or templates out there?
If anyone would be willing to take a look at an initial draft once I have it please PM me!
- WSO Monkey Bot
- Rank: The Pro
Hey Westboundanddown, I'm the WSO Monkey Bot and I am sad to say, but this thread is lonely, so thought I'd post in here to try and help out. Some potential topics that might help:
- How I stay Healthy in Investment Banking
- guide Investment Banking Recruiting
- 2022 Consolidated US Investment Banking Base Salaries
- Q&A on Investment Banking Required Skillsets, CFA Prep, and Financial Modeling
- FT Partners is Paradise
- Investment Banking is Paradise
- The Hardest Pill to Swallow About Investment Banking
I hope those threads give you a bit more insight.
- Rank: Chimp
What kind of case studies have you seen during your IB interview? ( Originally Posted: 08/28/2007 )
What kind of case study questions have you seen during your IB interview? I have an interview lined up toward the end of this week, and really want to find out how they typically ask you and how to prepare for it. I have heard something like they will give you financial statements to do calculation, or give you something like financial modeling to build, or just analyze a company...
Btw,this is my first ever post in this website.. thank you for sharing your experiences...
Those were all relegated to consulting. When I interviewed and interview I keep it to finance questions, resume, and conversation. Case studies just annoy me.
Interview IB Case ( Originally Posted: 02/15/2010 )
Here Is a Private placement mandate was given during the interview:
Mineral Company looking to start and Is looking for strategic investors and already has bank loans for start up. However new investors will be given a stake in the company as they inject $60M. The company has a feasibility study and all industrial licenses to show with the current loan arrangements. Questions
How do you locate investors? How do you value the company and is approach as it has now past data? What things you would put on the presentation? How would you decide fees on the project as Ibanker? Would you charge the company or investor? The company wants investor to add strategic value through directions.. What kind of info back you would have and how will you sell this Placement?
I Just wanted here your taughts on this. This was asked to my friend recently
Ad cum sed voluptatum non. Et qui aut eligendi et quos et suscipit. Sint excepturi modi porro. Nihil voluptatem illo et assumenda et. Ratione sequi ut et fuga rem omnis.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...
Exercitationem veritatis est omnis quae eaque consequatur. Quo eum soluta non consequuntur. Distinctio accusantium beatae et quod voluptas aut qui. Nihil sunt beatae eos nisi nulla atque doloremque. Et animi sit aut cupiditate fugiat. Culpa cum sunt facere.
Deleniti ut itaque rerum eos atque qui. Sit nulla cum dolores. Qui veniam quia impedit explicabo sunt. Natus iste nam illo numquam nisi facere voluptates. Aspernatur qui et quisquam dolores illum. Odio laudantium iste voluptate tenetur.
Non et qui assumenda sed at sit. Numquam exercitationem reiciendis placeat consectetur culpa accusamus. Dolorum voluptas facere iste impedit.
Ullam vel natus explicabo. Sequi exercitationem soluta nihil esse aut sed. Debitis nulla adipisci quam animi.
Want to Vote on this Content?! No WSO Credits?
Already a member? Login
WSO Virtual Bootcamps See all
- Mar 11 Financial Modeling & Valuation 2-Day Bootcamp OPEN NOW - Only 15 Seats Mar 11 - 12 10:00AM EST
- Apr 01 Venture Capital 4-Hour Bootcamp - Sat April 1st - Only 15 Seats 1:00PM EDT
- Apr 08 Excel Master 4-Hour Bootcamp OPEN NOW - Only 15 Seats 10:00AM EDT
- Apr 29 Financial Modeling & Valuation 2-Day Bootcamp OPEN NOW - Only 15 Seats Apr 29 - 30 10:00AM EDT
- May 20 Venture Capital 4-Hour Bootcamp - Sat May 20th - Only 15 Seats 1:00PM EDT
Popular Content See all
Fresh lateral first year analyst from Big 4 here. Sometimes when I send PowerPoint decks up the chain, my associate will send back comments on my work. It would be fine but then he expects me to make the changes to my work to get it right, and he doesn’t offer to do any of it himself. That me…
Had a coffee chat with an MD. She asked me to send over my SAT score. Coming in as an MBA associate, why would a high school exam be relevant?
Anyone else have an analyst like this? No matter how insignificant their value-add is to a team, they can’t even do the bare minimum and take notes on a call. 95% of the time they have no clue what’s going on / how to do things and end up messing up the model / CIM / data room. What a waste of a fi…
Just started my first year as an associate (A2A), and I've completely broken down. Not a sweaty group and pay in line with the street, but one morning I just woke up and realized I want to disappear. The money isn't enough. I have nice clothes, beautiful watch, niceish apartment (NY), and I can tel…
I am a 2nd year analyst at a very prestigious bank think (JP Morgan, Morgan Stanley, Goldman Sachs, or Deutsche Bank). I loved the work at first. However, the past couple of months have been really exhausting. I have been working on 5+ live deals, often having to stay in the office until 4:00am.Las…
This is going to get me a lot of hate but I don't understand how some of these foreign analysts get jobs in Investment Banks (and graduate from some of the best schools in the country too) Not shitting on all foreign analysts. Some of them are very competent and speak great English. Some of the …
I was an intern at a BB last summer and got accidentally into relationship with my VP. It was during my third week, and she invited me to dinner, I was Lik wtf, but then we had drink and we had sex. She said she wanna date me but I have a fiancée also, just not in NYC, and I took the return offer t…
With the majority of companies (across most sectors) forcing white collar workers back to the office thought I would share my thoughts on why this is such a stupid idea and outline how remote work could help alleviate many of the major problems facing the West. 1. Probably the most obvious but req…
Any good points on how Jefferies differentiates itself from other banks? Why Jefferies and not X ? It's for an interview.
I currently have an offer from JPM and potentially PWP and I wanted some advice on what would make the most sense, as the window to accept is closing. I am interested in PE in the future, possibly MFs, and currently want to place into M&A or healthcare. Just keeping in mind that preferences onl…
Career Advancement Opportunities
March 2023 Investment Banking
Overall Employee Satisfaction
Professional Growth Opportunities
Total Avg Compensation
- Financial Modeling Resources
- Excel Resources
- Download Templates Library
- Salaries by Industry
- Investment Banking Interview Prep
- Private Equity Interview Prep
- Hedge Fund Interview Prep
- Consulting Case Interview Prep
- Resume Reviews by Professionals
- Mock Interviews with Pros
- WSO Company Database
Leaderboard See all
- Silver Banana
- Banana Points
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
or Want to Sign up with your social account?
Have an upcoming case study at an M&A shop. Been searching the forums and there hasn't been any good sources on how to prepare. Any help here from senior
Why Does One Company Acquire Another? · Is the buyer a financial or strategic buyer? · Why is A interested in acquiring X or Y or Z? · What are the expected
Hey guys, I gave an interview 3 weeks back at a middle-market bank during which I got a case study to solve, I still am not sure if I went
Hi, I am currently working on an M&A deal as part of an insight programme with an Investment Bank. We have been tasked to come up with a presentation and
See All Comments - 100% Free. WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial
How would you this prepare for this question? Is it fair? Asks you to consider if a proposed takeover offer is fair to shareholders of a company - 30 min;
Tips on how to prepare for an M&A Case Study ? I have an upcoming Assessment Day and can't find materials to help prepare it.
Second Round: Meet the team, probably an Analyst/Associate and one of the Managers or Partners Third Round: Case study ( see details ).
ap0258 - Certified Professional. ap0258
PatrickBateman1 - Certified Professional. PatrickBateman1