Investment banking case studies are practical exercises used by firms to assess a candidate’s technical knowledge, problem-solving ability, and commercial awareness. They simulate real-life finance scenarios, such as mergers and acquisitions (M&A), IPO evaluations, or company valuations.
Whether you’re applying for an analyst position, attending an assessment centre, or prepping for a final-round interview, case studies are a core part of the process. Understanding what they are and how to master them is essential for anyone entering the industry.
This guide covers the various types of case studies, what interviewers look for, and how to approach each scenario with clarity and confidence.
Chapter 1: Why Investment Banking Uses Case Studies
Investment banks operate in fast-paced, high-stakes environments. Decisions worth millions or even billions are based on data, projections, and strategy. Case studies test whether a candidate can:
- Think critically under pressure
- Perform accurate financial analysis
- Justify decisions with commercial reasoning
- Present their findings clearly and professionally
Case studies are a reflection of the real work you’ll do as an analyst. They show employers whether you’re ready to hit the ground running.
Chapter 2: Types of Investment Banking Case Studies
2.1. Valuation Case Studies
These involve estimating the value of a company using common valuation methods:
- Discounted Cash Flow (DCF)
- Comparable Company Analysis (CCA)
- Precedent Transactions
- Leveraged Buyout (LBO) Analysis
You’ll often be given company data and asked to determine a fair valuation range or advise on a transaction price.
2.2. Mergers and Acquisitions (M&A)
These scenarios ask you to assess the strategic and financial rationale of a proposed acquisition. You may need to:
- Identify synergies
- Model post-deal financials
- Assess the impact on EPS (earnings per share)
- Recommend whether the deal should go ahead
2.3. IPO Evaluation
You may be asked to determine if a company is ready to go public. This includes analysing:
- Financial performance
- Market conditions
- Valuation multiples
- Risks and investor appetite
2.4. Restructuring
Here, you evaluate a struggling business and propose solutions:
- Debt refinancing
- Asset sales
- Cost-cutting strategies
- Turnaround plans
These are more qualitative but still require financial rigour.
Chapter 3: Case Study Formats
3.1. Individual or Group
Some case studies are solo tasks, others are done in groups. Group tasks assess collaboration, leadership, and negotiation.
3.2. On-the-Spot vs Take-Home
- On-the-spot: Given at assessment centres with 30–90 minutes to analyse and present.
- Take-home: You may get 24–72 hours to complete a written report or model.
3.3. Written or Presentation
You may need to write a report or present your findings to a panel. Some formats include Q&A sessions to test how well you defend your conclusions.
Chapter 4: Skills Assessed
Investment banking case studies assess both technical and soft skills:
4.1. Technical
- Financial modelling
- Excel and PowerPoint proficiency
- Understanding of valuation techniques
- Data analysis and interpretation
4.2. Commercial Awareness
- Industry knowledge
- Understanding of the deal context
- Insight into investor sentiment and risk appetite
4.3. Soft Skills
- Time management
- Communication
- Teamwork (in group settings)
- Poise under pressure
Chapter 5: How to Approach an Investment Banking Case Study
5.1. Understand the Objective
Are you valuing a company? Recommending an M&A strategy? Identifying risks? Clarify the goal before you dive in.
5.2. Organise Your Time
Example 60-minute plan:
- 5 min: Understand the task
- 10 min: Skim all materials
- 25 min: Perform analysis
- 15 min: Prepare presentation or report
- 5 min: Recheck and polish
5.3. Apply a Clear Framework
Have a structure:
- Executive Summary
- Key Assumptions
- Analysis (financials, market data, etc.)
- Recommendation
- Risks and Mitigation
5.4. Use Data Wisely
Focus on meaningful metrics:
- Revenue and EBITDA trends
- Growth rates
- Margins
- Debt levels
- Market multiples
Chapter 6: Sample Case Study Walkthrough
Scenario: You’re given financials and background for Company A, a mid-sized retailer considering acquiring Company B, a smaller competitor.
Objective: Should Company A proceed with the acquisition?
Steps:
- Analyse Company B’s financials
- Estimate deal size and funding requirements
- Identify synergies (cost savings, revenue growth)
- Model the combined entity’s financials
- Determine if deal is accretive (EPS impact)
- Recommend yes/no with rationale
Output:
- One-page executive summary
- Key numbers (purchase price, synergies, EPS impact)
- Risks (integration, culture clash, debt load)
Chapter 7: Common Mistakes to Avoid
- Ignoring the question’s main objective
- Over-complicating the analysis
- Making unrealistic assumptions
- Presenting without structure
- Not backing up recommendations with data
Chapter 8: How to Practise Effectively
8.1. Use Public Cases
Search for MBA-level case studies, business school libraries, or bank websites.
8.2. Build Financial Models
Practise DCF, LBO, and M&A models. Use Excel shortcuts. Familiarity improves speed.
8.3. Record Yourself Presenting
Watch it back to improve delivery, tone, and clarity.
8.4. Get Feedback
Ask peers, mentors, or professionals to review your work.
Chapter 9: Tips for Presenting Your Case
- Start with your recommendation
- Support it with 2–3 clear arguments
- Use charts and visuals where possible
- Be concise and professional
- Prepare for questions — know your numbers
Chapter 10: Real Examples from Top Firms
10.1. Goldman Sachs M&A Case
A client is considering acquiring a European tech company. You’re asked to analyse the target’s growth, synergies, and strategic fit. Required output: 10-minute presentation.
10.2. JP Morgan Valuation Case
Provided with 5-year financials for a private firm, you need to build a DCF and propose a fair value range. Required output: Excel model + summary slide.
10.3. Barclays Restructuring Case
Your team is asked to advise on options for a struggling retailer with heavy debt. Required output: Recommendation memo outlining 3 restructuring options.
Chapter 11: Final Thoughts
Investment banking case studies are intense, but they’re also an opportunity. They let you showcase your analytical mindset, business judgement, and communication skills. With practice and structure, you can turn them into a powerful advantage in interviews.
If you approach each case with curiosity, clarity, and confidence, you’ll stand out — not just as a candidate, but as a future banker ready to thrive in high-stakes environments.
