Investment Banking Case Study Guide for Singapore Internships

Investment Banking Case Study Guide for Singapore Internships

Some investment banks in Singapore include a written case study as part of their Summer Analyst selection process. Deutsche Bank, Barclays, and Standard Chartered have used case studies historically; boutique firms almost always include one. The case study tests whether you can think and work like an analyst — not just whether you can answer interview questions correctly.

What Is an IB Case Study?

An IB case study typically involves:

• A 20–50 page information package about a company or transaction (annual report extracts, market data, financial statements)
• A set of questions or tasks to complete
• 2–4 hours to complete the work
• A presentation of your findings to 1–3 interviewers

The output may include a financial model, a slide deck, a memo, or all three. The format varies by firm.

The 3-Hour Financial Model Build

If given 3 hours to build a model from scratch with provided financials, your time allocation should be:

Critical principles:

1. Link everything. Every cell should be a formula or a clear input assumption. Hard-coded numbers buried in formulas (e.g., =12500000.15 rather than =RevenueLineTaxRate) make your model unauditable and suggest you don't know what you're doing.

2. Structure before calculation. Sketch the model structure on paper before opening Excel: which rows represent each line item, where the assumptions will live (a dedicated "assumptions" or "inputs" tab), how the statements link.

3. Work top to bottom, left to right. Start with the income statement (revenue → EBIT → net income), then use net income to populate the cash flow statement, then complete the balance sheet. Build historical columns before projections.

4. Terminal value is your biggest assumption. In a DCF, the terminal value typically represents 60–80% of total enterprise value. Interviewers will probe your terminal growth rate choice. Know the justification for your rate — typically 2–3% for mature ASEAN businesses, anchored to long-run nominal GDP growth.

5. Checks. Build a balance sheet check (Assets = Liabilities + Equity). Build a cash flow check (ending cash = opening cash + net cash movement). If these don't balance, you have an error.

Common Mistakes

Mistake 1: Spending too long on formatting Interviewers want a functioning model, not a beautiful one. A model with working formulas, consistent structure, and clear assumptions that looks plain beats a polished model that doesn't calculate correctly.

Mistake 2: Using incorrect growth rate assumptions without explanation If you project 25% revenue growth for a mature telecommunications company, MDs will ask why. Growth rate assumptions must be defensible — anchor them to historical rates, industry benchmarks, or stated company guidance from the case materials.

Mistake 3: Not completing the deliverable Running out of time and presenting an incomplete model is worse than presenting a simpler, complete model. If you're running short on time, simplify — use a simpler valuation methodology (direct comps only, no DCF) rather than presenting a half-built DCF that doesn't calculate.

Mistake 4: Not identifying the key insight MDs reviewing case studies are not evaluating arithmetic — they can check the numbers in seconds. They are evaluating whether you identified the important insight in the materials. Was there a segment of the business growing at 3x the rest? Was there a covenant in the debt structure that constrains the company's M&A options? Reading carefully and identifying the non-obvious insight is what separates exceptional candidates.

Mistake 5: Memorising a template rather than thinking Banks can tell when a candidate has memorised a standard three-statement model template and applied it robotically without understanding the business. If the company is an asset-light subscription software business, a capital-intensive model structure is wrong. Read the business description carefully before building.

What MDs Look For

When a Managing Director reviews your case study, they are asking:

• Can they think? Is the analysis structured? Does the candidate identify the right questions to ask?
• Can they model? Does the financial model work correctly? Are assumptions sourced from the materials or made up?
• Can they communicate? Is the presentation clear and concise? Does it lead with the conclusion?
• Would I trust them with a client? Is the work product of sufficient quality to share with an external party?

The bar for "trust with a client" is higher than most students realise. Typos, inconsistent formatting, unexplained assumptions, and unclear structure all signal immaturity. Before submitting or presenting your case study, review it asking: "If I were a client's CFO, would I find this credible?"

Presentation Tips

When presenting your case study:

1. Lead with the bottom line — "My recommendation is X, based on three main findings..."
2. Walk through your model structure briefly, then focus on the key assumptions and outputs
3. Proactively flag limitations — "This DCF is sensitive to the terminal growth rate; at 2%, EV is X; at 3%, EV is Y"
4. Anticipate questions — Interviewers typically probe the two or three most aggressive assumptions. Know why you made them.
5. If you don't know something: "That's a good question — I didn't have data on [X] in the case materials, so I used [assumption]. If I had access to [X], I would refine this by..."

Intellectual honesty about limitations is valued. Defending incorrect assumptions under pressure is not.