TCLA Vacation Scheme Applications Discussion Thread 2021-22 (#1)

[Rob93]

Hey! I had a mock group case study exercise the other day and I came across something quite unusual in the material presented. The task was to advise the client on which company of three to acquire, and for one of the companies it was noted that accurate figures for forecasted cash flow were not available and so the figure was derived by comparing the company with a similar company in a different sector. I have three questions:

1) Am I right in understanding this as a market approach valuation?
2) Beyond noting that this is obviously less accurate (and a bit of a red flag) than other valuations which were based on figures publicly available for the respective companies, I wasn't sure what other information I could ask for- is there something that I could recommend or documents I could ask for to gain a better valuation or is the lack of publicly available figures the end of the story?
3) Why would accurate figures for forecasted cash flow not be available in the first place?

Finally, for the other two companies it was noted that we are confident in the accuracy of this valuation because "figures publicly available" were used. As above, do we just take this for granted and move ahead or is there more to unpack?

I'd really appreciate any advice since I'm just starting to gain a better insight into company valuations

Take nothing for granted. Cash forecasts might be difficult to get if the company is very young or if some of the value of the company is locked up in a way that hasn't been monetised yet, like IP for some product or service that isn't on market yet or has only recently gone to market. I can't imagine the reason why you would use 'a similar company in a different sector,' I'm not even sure that makes sense as a concept as you're not comparing like-for-like (not an expert though so I may be missing something here).

In general you want to dig into the revenue sources - if future cashflow forecasts are based off of historic revenue and growth, how sustainable is that growth and how secure are the revenues? As a very basic demonstration of the latter, suppose £10mm in annual revenues. If £3mm of that are from a single client or customer which has a right to terminate its contract if the company is bought out, there is some risk here - public information likely won't flag up this extreme reliance. So among many things, a major part of DD will be digging through customer contracts to see how reliable cashflows are.

A lot more than this goes into valuations from both the legal and IB side but these are hopefully of some use in the context of your questions.

 

[Lilz]

On my written application to Gateley, I spelt it as Gately instead of Gateley throughout my application. I think I mentioned their name 2 or 3 times. Would you suggest that I message them to let them know, or would that make it worse? I think this has probably ruined my chances completely! @Jessica Booker would this likely be a PFO? Many thanks!

 

[MillyWills]

Can you tell me if A is right or B? or if it should be something else.... (Yet again I know I am just confusing myself here 😂)

Format A
Dear (Partner/ senior associates name)

(greeting message)Below is the email you requested...

Dear (Client name)​

​

blah blah blah​

​

Yours sincerely,​

(firm name)​

(end message)

Kind regards,
(my name)

Format B

Dear (Client name)

blah blah blah​

​

Yours sincerely,

(firm name)​

For a written exercise where the instructions are from a partner/senior associate to send them a draft of an email to send to the client - how should one structure that. I know I am thinking in too much depth here but I really do not know. (because technically I am sending the email to the partner not directly to the client ...). Also, if the partner/senior associate is going to forward my email to the client - i technically should not sign my own name in the email if I am choosing format B - so should I sign it with the firms name?

Can you tell me if A is right or B? or if it should be something else.... (Yet again I know I am just confusing myself here 😂)

Format A
Dear (Partner/ senior associates name)

(greeting message)Below is the email you requested...

Dear (Client name)​

​

blah blah blah​

​

Yours sincerely,​

(firm name)​

(end message)

Kind regards,
(my name)

Format B

Dear (Client name)

blah blah blah​

​

Yours sincerely,

(firm name)​

I think you are overthinking this. I would recommend just addressing it to the partner and mirroring the salutations the partner uses in their instruction email. For example, in an AC i was successful in, the partner used “hi/ many thanks” so I used the same. Unless you are instructed otherwise.

These tasks are usually so time pressured, so I recommend conserving your energy for the actual task at hand 🤗💕

 

[therealellewoods]

From the applications I have reviewed, most candidates who write 'PE' in their answers do not formally introduce it first as you are proposing, in which case I advise them not to use the abbreviation. If you introduce it in the way that you have shown, then no-one can fault you for using the abbreviation.

My only question is, how many times do you plan to use the phrase private equity? If it is 2-3 times then I am not sure it is worth the hassle!

Thank you both!!! I used it about 4 times - I made sure to formally introduce it first as you advised

 

[James Carrabino]

Thank you both!!! I used it about 4 times - I made sure to formally introduce it first as you advised

Good luck with your application!

 

[LawfulRust00]

On my written application to Gateley, I spelt it as Gately instead of Gateley throughout my application. I think I mentioned their name 2 or 3 times. Would you suggest that I message them to let them know, or would that make it worse? I think this has probably ruined my chances completely! @Jessica Booker would this likely be a PFO? Many thanks!

In my view, the worst thing you can do is message them. On the off chance they don’t notice, don’t draw their attention to it. If they did notice, I’m not sure what messaging them will change.

 

[AP2000]

Take nothing for granted. Cash forecasts might be difficult to get if the company is very young or if some of the value of the company is locked up in a way that hasn't been monetised yet, like IP for some product or service that isn't on market yet or has only recently gone to market. I can't imagine the reason why you would use 'a similar company in a different sector,' I'm not even sure that makes sense as a concept as you're not comparing like-for-like (not an expert though so I may be missing something here).

In general you want to dig into the revenue sources - if future cashflow forecasts are bad off of historic revenue and growth, how sustainable is that growth and how secure are the revenues? As a very basic demonstration of the latter, suppose £10mm in annual revenues. If £3mm of that are from a single client or customer which has a right to terminate its contract if the company is bought out, there is some risk here - public information likely won't flag up this extreme reliance. So among many things, a major part of DD will be digging through customer contracts to see how reliable cashflows are.

A lot more than this goes into valuations from both the legal and IB side but these are hopefully of some use in the context of your questions.

Wow, thank you so much for this detailed response! It all makes much more sense now

 

[antisocial applicant]

On my written application to Gateley, I spelt it as Gately instead of Gateley throughout my application. I think I mentioned their name 2 or 3 times. Would you suggest that I message them to let them know, or would that make it worse? I think this has probably ruined my chances completely! @Jessica Booker would this likely be a PFO? Many thanks!

I'm not Jessica but I wouldn't message graduate recruitment to tell them about a spelling mistake in your application. They're likely to be very busy at the moment and I'm not sure they'd take well to an applicant notifying them of something they can spot themselves (like spelling errors).

 

[Lilz]

In my view, the worst thing you can do is message them. On the off chance they don’t notice, don’t draw their attention to it. If they did notice, I’m not sure what messaging them will change.

I'm not Jessica but I wouldn't message graduate recruitment to tell them about a spelling mistake in your application. They're likely to be very busy at the moment and I'm not sure they'd take well to an applicant notifying them of something they can spot themselves (like spelling errors).

I understand that they’ll most likely notice it. My point was that if I message them it might show to them that I am aware of my mistake.

 

[Future$trainee]

I've done the first half. Do you know where I can find any information on any recent deals, I can't navigate their website clearly.

Hey, how is the numerical part of the test? I literally haven't touched maths since GCSES so I'm a bit anxious about that part lol

 

[Jessica Booker]

On my written application to Gateley, I spelt it as Gately instead of Gateley throughout my application. I think I mentioned their name 2 or 3 times. Would you suggest that I message them to let them know, or would that make it worse? I think this has probably ruined my chances completely! @Jessica Booker would this likely be a PFO? Many thanks!

Unfortunately there is no point informing of this mistake. It will be a negative element unfortunately and many firms consider it a significant one. But I know people who have secured interviews for other firms with the firm’s name spelt incorrectly due to the absolute strengths shown elsewhere.

 

[RachelLouise22]

I understand that they’ll most likely notice it. My point was that if I message them it might show to them that I am aware of my mistake.

I wouldn’t say that showing awareness will chance the situation personally, for staff at the firm I’d say this mistake will stick out sadly

 

[Jessica Booker]

I understand that they’ll most likely notice it. My point was that if I message them it might show to them that I am aware of my mistake.

Unfortunately I don’t think this will help your situation, so I would just leave it.

 

[James Carrabino]

I understand that they’ll most likely notice it. My point was that if I message them it might show to them that I am aware of my mistake.

Don't message them, just don't get your hopes up too high. But much stranger things have happened than people spelling the firm name wrong still getting through to interview

 

[LawfulRust00]

I understand that they’ll most likely notice it. My point was that if I message them it might show to them that I am aware of my mistake.

I understand where you’re coming from, but what’s done is done, in my opinion. We all make mistakes and who would want to work at a firm that fails to accept this. Don’t fret 🙂

 

[James Carrabino]

For people that have done a CC AC - how did you prep for the written exercise. I am soo scared that I won't have time to read it all and write a page letter/memo/brief 😪 Any advice will be strongly appreciated.

@Commerciallaw I should link you this excellent post from @futuretraineesolicitor! The entire thread is very helpful

 

[James Carrabino]

Hi, does anyone have any experience with the Willkie analytical exercise? The invite states that preparation is not necessary, nor is any external legal or commercial knowledge. Therefore, does anyone have any tips on how best to perform i.e., will this just be a matter of providing a succinct argument based on the evidence and demonstrating good written skills?

Hi @PF'noooo! I have made some general comments on written exercises and case studies here. I was successful in Willkie's written exercise last year and I recall that it did not involve legal or commercial knowledge, but that knowing some commercial terms was helpful. I do not know if this is still the case this year, but otherwise I would say that it was a fairly generic written exercise and that my linked post should cover many of the points In my opinion, the main thing is always to make sure that you have a clear structure and that you answer all the questions they ask you. Good luck!

 

[AP2000]

I've got two ACs next week and I am starting to get overwhelmed with information. I had an interview last week with a different firm where I was unable to answer a competency question and I didn't answer two commercial questions how I would have liked 🥲, and it's stressing me out that maybe I don't know as much as I should. When do you know if you've done enough? I know you cannot prepare for every single thing, but the more time I have, the more I think I should be doing more competency examples, more firm research, etc 😕

Hey! Adding to James' response, I'd be more than happy to help with competency questions. If you'd like to talk through an answer to a question that you find difficult feel free to DM me . I consider them my strongest point and although this is my first application cycle I've done competency interviews with companies like BT and Barclays and have been successful. So yeah, let me know if I can help on that front

 

[Dwight]

Does anyone know where I can find a concrete list of Jones Day's practice areas. They don't have 'seats' due to their non-rotational TC, thus I am curious what work trainees have the opportunity to work on. Chambers talks about their work, but I am looking for a structured list.

 

[Jessica Booker]

Does anyone know where I can find a concrete list of Jones Day's practice areas. They don't have 'seats' due to their non-rotational TC, thus I am curious what work trainees have the opportunity to work on. Chambers talks about their work, but I am looking for a structured list.

Practices

Jones Day practices

www.jonesday.com