Private Equity case studies, worked step by step

Cases
100
Traced to a firm
59
Topics
12
Hard
30
Topic
All topicsGrowth equity and software8Returns attribution and value creation8LBO modelling tests9Screening and ranking businesses9Distressed and special situations7Private credit and direct lending9Paper LBOs10Real estate and infrastructure8Portfolio operations and exits6Deal structuring and pricing9Fund, LP and portfolio analytics7Commercial and market cases10
Level
AnyWarm upCoreHard
Source
AnyReported at a firmStandard
Showing 91–100 of 100
  1. 091Commercial case: an industrial water treatment company with Rs 350 crore of revenue, 45% of it from five customers, in a market growing 11% where it holds 8% share. Assess market, position and concentration, and say what the sponsor must believe.Commercial and market casesCoreAdvent InternationalLondon · 2023
  2. 092Take-home SaaS case: ARR Rs 250 crore, net revenue retention 115%, gross churn 8%, new ARR Rs 60 crore a year. Project ARR for five years, value it at 8x, and show what happens if retention falls to 100%.Growth equity and softwareHardSoftware buyoutGrowth equity
  3. 093A sponsor asks for debt of 5x EBITDA of Rs 60 crore at 11%, with capex of Rs 10 crore and tax of Rs 8 crore. Work interest cover and free cash flow after debt service, and decide whether to approve.Private credit and direct lendingWarm upPrivate credit
  4. 094Paper LBO with fees and a rollover: EBITDA Rs 60 crore at 9x, fees of 3% of EV, 4.5x debt, management rolls Rs 30 crore. EBITDA reaches Rs 90 crore in year 5, debt falls to Rs 150 crore, exit at 9x. What is the sponsor's MOIC and IRR, and what did the fees cost?Paper LBOsCoreWarburg PincusNew York · 2020
  5. 095Model debrief: your model shows about 31% IRR on Rs 300 crore of revenue, margin rising from 30% to 40%, entry at 20x EBITDA with 6x debt and exit at 18x in year 5. Which three assumptions drive the IRR, and what is it if the margin stays at 30%?LBO modelling testsCoreVista Equity PartnersAustin · 2024
  6. 096Seasonality case: 60% of a stationery maker's revenue comes in two back-to-school months and inventory peaks at Rs 120 crore. How much working capital funding does it need, and what does that mean for debt sizing?Commercial and market casesWarm upMid-market buyout fund
  7. 097A growth fund puts Rs 150 crore in for 15% of an edtech company with Rs 200 crore of revenue growing 40%. What exit value gives 3x in five years, and what revenue and multiple does that need?Growth equity and softwareCoreGrowth equity
  8. 098A shipping company can buy containers at Rs 2.5 lakh each with a 12-year life and Rs 30,000 residual, or lease them at Rs 40,000 a year. At a 10% cost of capital, which is cheaper, and what does the answer do to return on equity?Deal structuring and pricingCoreWarburg PincusNew York · 2012
  9. 099Stress test the model: base EBITDA Rs 100 crore, debt Rs 550 crore, leverage covenant 6.0x. In the downside, revenue is flat at Rs 700 crore and margin falls 300 basis points. Does the company breach, and what does IRR fall to?LBO modelling testsCoreMid-market buyout fundPrivate credit
  10. 100A tile maker was bought at 9x EBITDA of Rs 80 crore with Rs 400 crore of debt and sold at 10x EBITDA of Rs 130 crore with Rs 200 crore of debt. Split the equity gain among EBITDA growth, multiple expansion and debt paydown.Returns attribution and value creationWarm upTPGNew York · 2024

Company names and figures are illustrative.