PE Case Study Interviews: Framework, Memo Structure, and Timing

PE case studies test judgment under incomplete information. You might get a CIM excerpt, a data pack, and two to four hours (or a take-home) to produce a memo or slides: thesis, risks, returns sketch, and a clear recommend / pass. Modeling skill helps. Structure and prioritization win.

The short answer

"Lead with a recommendation, then earn it with a falsifiable thesis, a simple returns frame under three cases, and risks that sound like diligence. Do not hide the decision. Pass if the kill issues are real. Show what must stay true if you recommend."

Common formats

Read the prompt for required sections. If they ask for a go / no-go, do not hide the answer on page four.

A repeatable framework

Memo outline that interviewers like

1. Recommendation (3 to 5 lines)
2. Investment thesis (3 bullets max)
3. Company / market (tight)
4. Financial highlights (table > paragraphs)
5. Valuation and returns (entry multiple, MoIC / IRR cases)
6. Key risks and mitigants
7. Diligence plan next 2 weeks

If slides: one idea per page. No wall of text.

Thesis bullets that work

Good thesis bullets are falsifiable:

• "Recurring revenue over X% with net retention above Y supports premium multiple"
• "Capacity expansion already paid for unlocks volume without heavy growth CapEx"
• "Customer concentration below Z% and switching costs visible in churn data"

Bad thesis bullets:

• "Great management"
• "Large TAM"
• "Attractive industry"

Returns without a perfect model

Even in memo-only cases, show a simple returns frame:

Entry EV = Entry EBITDA x Entry Multiple
Debt capacity sketch -> equity check
Exit EV = Exit EBITDA x Exit Multiple
MoIC / IRR under Base / Downside / Upside

Haircut addbacks. Show what happens if exit multiple compresses 1.0x. Name whether growth or deleveraging does more work in the base case.

Risks section: be specific

Recommend vs pass

Passing is allowed. Vacillating is not. If you pass:

• State the kill issue in one line
• Say what price or proof would change your mind

If you recommend:

• State the 2 to 3 things that must stay true
• List diligence items that could reverse you

Time allocation (3-hour case)

Protect the last 30 minutes. A clean memo with a clear call beats a half-finished mega-model.

Verbal debrief

After you submit, they may grill you. Expect:

• Why not a lower entry multiple?
• What did you ignore in the CIM?
• How does working capital behave at growth?
• What is the worst reasonable downside?

Verbal 30 seconds (how you approach cases)

"I draft the recommendation first, then build a falsifiable thesis, a three-case returns sketch, and specific kill risks. I haircut aggressive addbacks, stress exit multiple, and leave a diligence list that could reverse me. Clarity beats false precision."

Practice the EBITDA addbacks pushback and a clean LBO walkthrough. Also skim Quality of Earnings and LBO candidate characteristics.