A complete worked example of a Transaction Services interview case study: EBITDA bridge, net debt and EV/Equity bridge with sample data and commentary.
Here's a simplified worked example of the type of case study you might encounter in a Transaction Services interview. The numbers are illustrative, but the structure and logic are exactly what you'll need to apply in a real interview or assessment.
You are advising a financial buyer on the acquisition of Tekford Solutions, a B2B software and services company. You've been provided with three years of management accounts and a data pack. The buyer is considering a 7x normalised EBITDA multiple. You've been asked to (1) calculate normalised EBITDA and (2) construct the EV to Equity bridge.
| P&L Line | EURk |
|---|---|
| Revenue | 9,800 |
| Cost of sales | –4,700 |
| Gross profit | 5,100 |
| SG&A | –1,850 |
| Reported EBITDA | 3,250 |
| Adjustment | EURk | Category | Notes |
|---|---|---|---|
| Reported EBITDA | 3,250 | — | Starting point |
| M&A advisory fees | +320 | One-off | Confirmed by invoice |
| COO departure | +180 | One-off | HR agreement confirmed |
| Capitalised maintenance | –240 | Presentation | Maintenance in substance per IT team |
| New Head of Sales annualisation | –113 | Run-rate | 9 months remaining × EUR 150k/12 |
| Acquisition annualisation | +420 | Pro-forma | September acquisition, verify with carve-out accounts |
| Normalised EBITDA | 3,817 |
At 7x: Enterprise Value = EUR 26.7m.
Balance sheet data:
| Line | EURk |
|---|---|
| Enterprise Value | 26,719 |
| − Bank debt | –3,200 |
| − Finance leases | –420 |
| + Cash | +680 |
| − Pension deficit (debt-like) | –290 |
| − NWC shortfall | –230 |
| Equity Value | 23,259 |
On the EBITDA bridge: note that the capitalised maintenance is a deduction, not an add-back. Not all adjustments benefit the buyer. The pro-forma acquisition adjustment is the most contestable item — in a real deal, you'd verify the EUR 420k with detailed carve-out accounts.
On the bridge: the pension deficit is a debt-like item that reduces equity value pound for pound. The NWC shortfall is an adjustment for delivering less working capital than contractually agreed.
In the interview: the ability to walk through this kind of exercise — live, under time pressure, with numbers — is what separates prepared candidates from unprepared ones.
The programme's case studies include 8 complete exercises at this level of detail, with full data packs and model solutions.
Hundreds of candidates prepared their interviews with this programme. Those who landed the role have one thing in common: they worked the cases before walking into the room.
