The following are three case study example questions from actual investment banking interviews. Please answer the questions by explaining what you would advise each client to do in the comments section below this article and you will be given feedback.
Case Study Question 1 - A client of yours owns his own business 100% outright. It is worth £500M and he/she would like to get some liquidity out of his company, but still wants to continue working. How do you advise your client to get the maximum valuation, while still retaining some ownership?
Case Study Question 2 - A public company is currently trading at a 52-week low. The company's current quarterly reporting is on schedule with analyst's and management's predictions. The management team is looking to raise money to fund a project, which they believe will double the company's EBITDA. What options do you advise the company to pursue in order to raise the necessary capital?
Case Study Question 3 - Your client has a company, which manufactures and sells propellers and is preparing to sell the entire company. The company is comprised of three divisions: boat, air, and windmill propellers. The boat and air divisions comprise 80% of the company, while the windmill division makes up only 20%. The boat and air divisions are losing money, while the windmill division is making money, so the net effect of the company is to break even. What do you advise your client to do in order to help them sell their company at the best price (ie. best valuation)?