How do you present a scenario analysis to the board?
A core FP&A interview question — asked in analyst and associate interviews across IB, PE, and the Big 4.
THE SHORT ANSWER
One page: base/bull/bear summary table showing revenue, EBITDA, cash, covenants for each. Tornado chart showing which variables drive the most variance. Key message: ‘Even in the bear case, we don’t breach covenants’ (or: ‘In the bear case, we need €XM additional facility’).
WHAT INTERVIEWERS LISTEN FOR
- ✓One-page summary table
- ✓Base/bull/bear scenarios
- ✓Tornado chart for variance
- ✓Key covenant message
COMMON MISTAKES
- ✗Too many pages or details
- ✗No clear bear case conclusion
- ✗Ignoring covenant impact
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