Private Equity - Case Study

Level 1

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This case study test evaluates a candidate's understanding of a basic-level Private Equity transaction, walking through a basic case study of investing in a new business. 

The case study covers technical analysis, transaction structuring, calculating returns, due diligence and legal workstreams.

Designed to access

  • Understanding of a Private Equity deal

  • Deal structuring

  • Valuation methodology

  • Legal and Due Diligence workstreams

  • Returns

Use this test to hire for

  • Private Equity Analysts
  • Private Equity Associates
  • Corporate Finance
  • Investment Banking
  • Fund Placement

Question

You are part of the investment team on a new deal. The target business is a construction software business that made £25m Revenue, £17m Gross Profit and £7m EBITDA for the full year 2022. This year the business is forecast to make £35m Revenue, £24m Gross Profit and £15m EBITDA. What’s the top line growth rate of the business?

Select ONE answer

Question

As an investment team, you decide to make a first round bid for the construction software business. The business made £7m EBITDA the previous year and is forecast to £15m EBITDA in the current year. We have decided to bid 12x Forward EBITDA. What is the Enterprise Value of the business?

Select ONE answer

Question

You complete the due diligence process and move into the legals of the deal. Tick all the legal documents you consider to be in standard set of documents for a private equity transaction:

Select ALL that apply

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