Investment Banking Case Studies: Applying Financial Modelling to Real-World Transactions

Investment banking can look like a world of financial statements, valuation models and spreadsheets. But the real challenge begins when these tools have to answer a business question: Should a company acquire another business? How much is it worth? Will the deal create value? This is where financial modelling moves beyond theory and becomes part of actual transaction analysis.

Case studies make this process easier to understand by placing financial modelling in situations similar to those analysts may encounter in investment banking. By working through acquisitions, valuations, mergers and other transactions, learners can see how assumptions, financial data and valuation techniques come together to support transaction decisions.

What Are Investment Banking Case Studies?

Investment Banking case studies apply financial concepts to a specific transaction, company or financial situation. They can involve equity or debt capital raising, mergers and acquisitions, leveraged buyouts or corporate restructuring.

A case study typically requires you to understand the transaction, identify the financial objective, select an appropriate valuation or modelling approach and interpret the resulting analysis.

Key Areas Covered in Investment Banking Case Studies

These areas show how different financial techniques can be applied depending on the type of transaction being analysed.

How Financial Modelling Is Applied to Investment Banking Transactions

Financial modelling helps convert financial information and assumptions into an analysis that can support transaction decisions. The type of model depends on the transaction and the question being examined.

Financial Statement Analysis

Financial statements provide the starting point for understanding a company's financial position and performance. Analysis of revenue, expenses, profitability, assets, liabilities and cash flows can provide inputs for valuation and transaction models.

DCF Modelling

Discounted Cash Flow modelling uses projected cash flows to assess the value of a business. It is one of the valuation techniques covered in the PW Skills Investment Banking Course, alongside Comparable Company Analysis and Transaction Multiples.

Comparable Company Analysis

Comparable Company Analysis compares a company with selected comparable businesses using relevant financial and valuation measures. It can provide a market-based perspective when assessing company value.

Transaction Multiples

Transaction Multiples use valuation information from transactions to analyse the value associated with comparable deals. This approach can be relevant when studying acquisitions and other corporate transactions.

LBO Modeling

An LBO model examines how a leveraged acquisition can be financed and how the investment may perform under different assumptions. Key areas include financing structures, investment returns and potential exit scenarios.

Investment Banking Case Studies Across Transaction Types

Different transactions require different financial analysis. The following cases listed by PW Skills illustrate how the focus of an investment banking case study can change according to the transaction.

Tata Technologies IPO: Equity Capital Markets

The Tata Technologies IPO case focuses on the Equity Capital Markets side of Investment Banking.

The case covers:

• End-to-end IPO process

• Equity capital raising

• Deal structuring

An IPO case helps connect capital markets concepts with the process of raising equity and structuring an offering.

Adani Green Bond Issuance: Debt Capital Markets

The Adani Green Bond Issuance case focuses on Debt Capital Markets and a real USD bond issuance.

The case covers:

• Debt capital markets

• Bond issuance strategies

• Financing decisions

This type of case helps examine how debt instruments and financing decisions fit into a company's capital-raising process.

Wipro's Acquisition of Capco: M&A

The Wipro's Acquisition of Capco case focuses on mergers and acquisitions.

It covers:

• Acquisition strategy

• Valuation

• Deal structuring

• Purchase price allocation

• Synergy analysis

An M&A case therefore brings together valuation and transaction-structuring concepts rather than examining them independently.

Private Equity LBO: Leveraged Buyout Modeling

The Private Equity LBO case focuses on building an LBO model from scratch.

The analysis covers:

• LBO modelling

• Investment returns

• Financing structures

• Exit scenarios

This connects the mechanics of an LBO model with the financing and return considerations involved in a private equity acquisition.

Jet Airways Under IBC: Corporate Restructuring

The Jet Airways under IBC case examines corporate restructuring.

It covers:

• Insolvency resolution

• Debt restructuring

• Turnaround strategies

A restructuring case requires a different financial perspective from an IPO or acquisition because the focus shifts towards financial distress, restructuring and turnaround considerations.

Investment Banking Case Study: Comparing the Financial Analysis

The transaction type determines the financial questions that need to be answered.

Looking at these transactions together shows why investment banking requires more than one financial model or valuation method. The analysis changes according to whether the objective is raising capital, acquiring a business, evaluating an investment or restructuring a company.

What Skills Are Needed to Work on Investment Banking Case Studies?

Working through transaction-based cases requires a combination of financial and analytical skills.

Financial Modeling

You need to understand how financial information and assumptions are converted into models that can be used for analysis.

Valuation

Valuation skills help assess businesses using approaches such as DCF, Comparable Company Analysis and Transaction Multiples.

Financial Statement Analysis

Understanding financial statements helps identify the information needed for forecasts, valuation and transaction analysis.

Deal Structuring

Different transactions have different structures. Understanding how acquisitions, capital raising and financing arrangements are structured is important when analysing a case.

Capital Markets

IPO and bond cases require an understanding of how companies raise capital through equity and debt markets.

Analytical Interpretation

Building a model is only one part of the process. You also need to interpret the outputs and connect them to the transaction being analysed.

Learn Investment Banking Case Studies With PW Skills Investment Banking Course

The PW Skills Investment Banking Course uses transaction-based case studies to help learners apply financial modelling, valuation and deal analysis to different types of investment banking situations.

These case studies cover different transaction types, so you can see how the financial analysis changes depending on the objective of the deal. The course also includes financial modelling, DCF, comparable company analysis, transaction multiples, M&A and LBO modelling, which can be applied while working through these cases.

Under the Pro Plan, learners also work on a capstone project, giving them another opportunity to apply the concepts covered during the course. Live weekend doubt sessions provide additional learning support, while applicable plans include resume building, interview preparation and career guidance to support Investment Banking career preparation alongside technical learning.

How to Build and Solve an Investment Banking Case Study?

You can approach an investment banking case study by moving from the transaction objective to the relevant financial analysis.

Step 1: Identify the Transaction

First, determine whether you are analysing an IPO, bond issuance, acquisition, LBO or restructuring situation.

Step 2: Understand the Financial Objective

Identify what the transaction is trying to achieve. The objective could involve raising capital, acquiring a company, evaluating an investment or restructuring existing debt.

Step 3: Analyse the Financial Information

Review the relevant financial statements, business information and transaction assumptions before selecting the appropriate model.

Step 4: Select the Valuation or Modelling Approach

Choose the method that fits the transaction. Depending on the case, this could include DCF, Comparable Company Analysis, Transaction Multiples or LBO modelling.

Step 5: Build the Model

Translate the available financial information and assumptions into the relevant financial model.

Step 6: Interpret the Results

Examine the valuation, financing structure, investment returns or other outputs and connect them back to the transaction objective.

Step 7: Present the Transaction Analysis

Summarise the key findings and explain how the financial analysis supports an understanding of the transaction.

 Investment banking case studies connect financial modelling and valuation techniques with transactions such as IPOs, bond issuances, acquisitions, LBOs and corporate restructuring. Working through different transaction types can help you understand why the financial analysis changes according to the objective and deal structure.

The PW Skills Investment Banking Course combines financial modelling, valuation, M&A, LBO, capital markets and real-world case studies with practical learning to help you apply investment banking concepts to transaction-based financial analysis.