Welcome back!



Forgot password?

Don’t have an account? Subscribe now

23 McKinsey, Investments

Session 23: Development Areas, Regional-focus, Corporate Finance-Investments & Partner-style cases

Corporate Finance cases elicit the same response in candidates as math does to the average person. Yet, corporate finance cases should be addressed like a math problem. First, a candidate needs to identify the corporate finance issue being tested.

Consulting candidates need only focus on two issues: valuation and return-on-investment calculations. In a valuation case either a multiples-method or discounted-cash-flow method is being tested. That said, a candidate will rarely be expected to do the calculation. It requires more finance knowledge than the average candidate needs to know. A candidate should understand how to do the calculation and talk the interviewer through the very, very basic steps.

Return calculations are different. Candidates may be tested on these. Return on investment calculations are very simple since all the candidate needs to do is calculate all the returns and all the costs and apply the ROI formula. The challenge for most candidates is first identifying a corporate finance case, then determining ROI must be calculated and finally not double counting costs and revenues for the formula.

In our experience, it is more important for a candidate to understand the above and how it can be applied. Rarely will a candidate be failed except for a basic mistake on the ROI calculations.

We retain the heavy focus on partner style cases and preparation for German and Australian office interviews.

All recordings stop at the end of this session.

In the session descriptions which follow, we are using one description for 4 different candidates. Yet candidates do not perform the same, and while the descriptions are mostly accurate, there will be some differences as a few cases are brought forward, others moved back or candidates fail to prepare adequately. While these differences are minor, they sometimes occur.

Cases questions taught in the session:

Felix’s cases recorded in the session; Talk me through how you make decisions in your life, any major decision (Fit Question), Talk me through an e-commerce business trend and explain to me how it would impact a German banking CEO, Brainstorm the impact of Toronto opening a casino, Advise the Chinese Investment Corporation which wants to buy a bridge in the USA, Estimate the number of bridges in the world, McKinsey Global Institute Germany Productivity Auto discussion & McKinsey Corporate Finance – Investment function data interpretation.

Want to learn more about how FIRMSconsulting
can help your organization?

Related Articles

Uncategorized

Start Here: Reaching Your Potential

Approximately 6.7% of the world’s population has a university degree. Less than 1% of this select group has the intent and the will to make a difference. Because you are receiving this email, I know you are likely a part of that small group. Thank you for being the kind of person who wants…

Career

Procrastination: Why You Procrastinate and How to Overcome It

We started our Executive Presence, Gravitas & Structured Thinking challenge by keeping your need for being important and superior to others in check. If you missed that post, please read the previous post first. It is foundational. Today I want to focus on the importance of recovering from perpetual procrastination. We will…

Career

Arrogance: Effective Ways to Stop Being Arrogant and Fearful

Summary: How to test if you are arrogant, what arrogance does to your career and life, and how to stop being arrogant and fearful. This post starts a series of posts to help you elevate your level of executive presence, influence, gravitas, confidence, and communication skills. In this first post,…

We are using cookies on our website

Please confirm, if you accept our tracking cookies. You can also decline the tracking, so you can continue to visit our website without any data sent to third party services.