Bain Private Equity Case Interview Example
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- Опубликовано: 6 окт 2024
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Want to see how Bain & Company conducts case interviews? Today is your lucky day.
In this session, you’ll see how a former Bain consultant (Pranav) runs a case interview and how a top candidate (Taylor) who recently accepted a BCG offer:
Builds and communicates a framework
Works through mental math
Answers brainstorming questions
Drives to a strong final recommendation
This is a great example of an almost-perfect casing performance. Make sure to pull out your Notes app because there are myriad takeaways with this one!
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Highlight timestamps so you can follow along:
4:34 - Case prompt
5:07 - Recap by candidate
7:01 - Case framework
24:58 - Final recommendation
27:07 - Feedback by the interviewer
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Great case interview example. Thanks for sharing!
I do have to point out that the team should be valued as it stands at the time of purchase. This means that the fair market value is 1 billion (100m on earnings at a 10x multiple). It is true that the team could be valued at 1.4B with added synergies (assuming the synergies are realized within a year of acquisition), but the value add is purely due to the operational efficiency produced by the PE fund. To say that this is a good deal since the FMV of team with synergies, 1.4B, is greater than the offer price of 1.1B would be incorrect.
If the deal were to happen at 1.1b, it would imply a 10% premium over fair market value. Therefore, it is a bad deal. The current owner(s) shouldn’t be compensated for the value added by the PE firm.
Hey there, while I do understand where you are coming from - I believe your answer would be right for a pure financial investor with no expertise whatsoever to exploit synergies from value creation initiatives to increase profits.
You should look at it from the buyer’s perspective.
Assuming that the P/E ratio remain constant at 10x at exit (e.g. client sells the team to another PE fund 3 years later), the profit of $140m would value the company at $1.4b - which is still a $300m profit for the client (1.3x MOIC). And given that there are no IRR requirements in the client’s end - this would be a green light for me.
The guy did a good job.
Thank you for that example of Private Equity case! Cheers from Peru
Awesome. Could you briefly do a summary of Asda takeover by private equity?
amazing case
Great job it was a great interview
Is there a recommended framework to debrief these cases?
Great case: shouldn’t we consider post-tax profit in the valuation?
Do you have to do math on paper during these interviews or can you use a calculator?
math in head or on paper. no calculator
This interviewee doesn’t take feedback well and keeps trying to rationalize why he did what he did.
This guy called it Fighting Phillies and minor league. It’s PHILADELPHIA AND ITS MAJOR LEAGUE BASEBALL
relax not everyones an american
Why does this interviewer look so disheveled and unkempt? I know it’s a mock interview, but come on man.
Because he owns a bank what do you need more
@@anandtiwary621 which bank?