Private Equity Interview Case Study Pdf -

: Build a basic LBO model using the ASBICIR method: Assumptions, Sources & Uses, Balance Sheet, Income Statement, Cash Flow, Interest, and Returns .

| Mistake | Consequence | |---------|-------------| | Ignoring stock-based compensation or non-recurring expenses | Overstated EBITDA → Overpaying for company | | Using maintenance capex instead of growth capex | Understated cash needs → Liquidity crisis | | Forgetting option pool dilution | Overstated equity return to PE fund | | Assuming exit multiple = entry multiple | Unrealistic returns (multiple contraction is typical) | | No sensitivity tables | Looks unprepared for downside scenarios | private equity interview case study pdf

Don't just list generic risks. Tie them to your model's assumptions (e.g., how high customer concentration threatens revenue stability and debt service). 3. Key Resources and Practice Materials : Build a basic LBO model using the

: Identifying what could go wrong and how to protect the investment downside. Growth Equity Interview Guide Highly-Rated PDF & Preparation Resources The differentiation is your investment thesis —can you

Technical modeling is table stakes here. The differentiation is your investment thesis —can you spot the operational improvements (e.g., "They have 3 warehouses when they only need 2") that the seller has missed?

PE funds pay for Normalized EBITDA , not GAAP EBITDA.