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 11–20 of 41 · filtered from 100Clear filters
  1. 030A steel maker is in insolvency. Liquidation would fetch Rs 400 crore; a bidder offers Rs 650 crore. Work the distribution across financial creditors, operational creditors and shareholders, and say why lenders vote for the bid.Distressed and special situationsHardSpecial situations
  2. 034A tower company owns 10,000 towers at a tenancy of 1.6. Each tenant pays Rs 40,000 a month and each tower costs Rs 2.5 lakh a year to run. What is EBITDA at 1.6 and at 2.0 tenancy, and why do tower buyers pay for tenancy growth?Real estate and infrastructureCoreInfrastructure fund
  3. 037A growth fund buys a minority stake in a fintech at 10x revenue and expects to exit at 5x revenue in five years. What revenue growth does it need for a 25% IRR, and is that believable?Growth equity and softwareHardGrowth equitySoftware buyout
  4. 038A portfolio company's EBITDA has fallen from Rs 100 crore to Rs 70 crore against Rs 480 crore of debt and a 5.5x leverage covenant. How large an equity cure is needed, and should the sponsor put the money in given a plan to recover to Rs 90 crore?Portfolio operations and exitsHardPortfolio operations teamPrivate credit
  5. 040A sponsor asks for 6x adjusted EBITDA. Reported EBITDA is Rs 80 crore and the adjusted figure of Rs 100 crore includes Rs 20 crore of add-backs. What leverage is that on reported EBITDA, and which add-backs would you accept?Private credit and direct lendingCorePrivate credit
  6. 043Buy-and-build: a vet clinic platform with Rs 40 crore of EBITDA is bought at 12x, six bolt-ons of Rs 5 crore EBITDA each are bought at 6x, integration costs Rs 15 crore, and the group exits at 12x in year 5 with 8% organic growth. Split exit value into organic growth, acquired EBITDA and multiple arbitrage.Returns attribution and value creationHardMid-market buyout fundIndian mid-market PE
  7. 044A growth fund invests Rs 200 crore for 25% of a cloud kitchen company with a 1x non-participating liquidation preference. What does the fund receive at exit equity values of Rs 500, 800 and 1,500 crore, and at what value does converting beat the preference?Deal structuring and pricingWarm upGrowth equity
  8. 047In a case pack, the plan takes a uniform maker's EBITDA margin from 10% to 15% on Rs 500 crore of revenue growing 8%. Entry and exit at 9x with 4x debt. What share of the IRR depends on the margin plan, and what evidence would you ask for?Returns attribution and value creationCoreMid-market buyout fund
  9. 048Debt-for-equity restructuring: a shipyard owes Rs 1,200 crore on Rs 100 crore of EBITDA. Lenders cut debt to 4x and take 70% of the equity, with enterprise value at 7x. What do the lenders recover in debt and equity, and what do the old shareholders keep?Distressed and special situationsHardSpecial situations
  10. 051A half-empty mall is let up from 60% to 90% occupancy over three years. What is it worth at stabilisation, and how much value did the leasing create?Real estate and infrastructureWarm upReal estate PE

Company names and figures are illustrative.