Investment Banking Case Studies

 Abhiron Bhattacharya       2 yrs ago ago

Investment Banking Case Studies

  • Case studies give banking recruiters an indicator of how you would perform on the job. Hence, considered a better measure to judge candidates.
  • You do not have to worry if your answer is correct or not. Instead, the interviewers are eyeing the candidate’s thought process and analytical skills to find a solution to the given problem creatively.
  • Case studies appraise how you process information and react to new and surprising situations.
  • Many times, the case studies are to be solved with a group. Hence, the interviewer here tests how you work within a team.

Types of Investment Banking Case Studies

Strategic Decision-making (Consulting Types Cases)

  • Time Period: Around 45-60 minutes for preparation and a 10-minute presentation followed by a round of questions and answers.

Example: One of your clients is a global corporation that manufactures and distributes a wide range of perfumes. They are contemplating ways to expand their business. There are two ways to either introduce a new range of fragrances with the current distribution channels or start a completely new company with different stores.

You are supposed to find out which would be a better solution for the business. To solve this, you need to compare the returns of the investments and decide on the solution with supportive reasons.

Modeling Investment Banking Case Studies

  • Take-home case studies where you must do financial modeling and simple valuation. So, it is more like a modeling test than a case study.
  • Then, you need to showcase your recommendations to the bankers on the interview day over a 30–45-minutes presentation.

Example: Simons Ltd., a software company, wants to maximize its shareholder value. It has three options to look forward to selling the company, i.e., making small acquisitions or growing organically. Argus Ltd. requests advice from your bank on the right course of action.

Appropriate Deliverables:

  • They would provide an overview of the business, its competitors, probable acquisition candidates, financial statements, and future projections to review the company.
  • Read through the provided information and understand the industry.
  • Try to gauge the worth of the company compared to its peers.
  • Conduct a valuation analysis using DCF and relative valuation techniques.
  • Compare the three options with the valuation and the impact of acquisitions.

How to prepare for Investment Banking Case Studies?

  • Learn about various valuation techniques, their calculation, and how they are interpreted.
  • Especially for modeling and valuation-based case studies, you must be prepared to format it consistently using PowerPoint and Excel.
  • You may not find real case study questions that banks use for interviews. But since you have to practice, try asking a friend or mentor you know who has been through such case study rounds for the kind of questions they received.

To practice more on case studies and tests at the assessment center, check out

Tips for Performing Well at Investment Banking Case Studies

While working on the Investment Banking Case Studies

  • Use a structured approach to tackle the problem.
  • Understand the case and questions carefully before interpreting and think twice before finalizing the problem’s decision.
  • For modeling case studies, format the Excel and PowerPoint professionally.
  • Prepare the type of questions you may be asked during your presentation.
  • Have strong logical reasons behind every statement you make and cater to the case’s critical issues at the beginning.
  • Having specific knowledge regarding the industry under study is unnecessary, but it would be an added advantage.
  • When preparing, focus on reading deal news and practice as many scenarios as possible.

Investment Banking Case Study- Sample

You must be wondering how we apply all this in a case study. Let us understand investment banking case studies through an example discussed below: –

Conclusion

Since investment banking case studies are an important element in the interview process, messing it up will mean missing the offer. So instead, consider investment banking case studies as an opportunity to showcase your skills and talent to investment bankers. 

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