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Do you know the prompt? I would skim a consulting case guide to get a framework in mind but basically super critical to start with confirming the objective with your interviewer. If the goal is valuation, go with your latter questions. If it’s investment merit overall, go with former.
Also would lead with hypothesis eg don’t just ask “is it capital intensive business” instead ask about the revenue model and then provide a hypothesis “I believe this is a good business from a cash POV - do we have any data on x y z to confirm?”
I’ve found it to be a mix of both, where they expect you to build a paper LBO to understand returns but also be able to talk through the investment thesis and risks. So the paper LBO being just being one datapoint
For a 30 min paper LBO, u want to ask straight up all the important metrics needed:
purchase price - entry multiple
Sources and uses must balance
Debt terms - interest and repayments
Capex
Everything you need to get to free cash flow to equity
Exit multiple should be same as entry
Exit value minus debt at exit to get to equity value
Then estimate IRR - initial equity investment only (not the debt consideration) vs. Exit equity value
I’d estimate IRR based on the MOIC and timeframe