Bauer Student Team Lands Second Place, Earns Scholarship
A team of four undergraduate students from the C. T. Bauer College of Business was recently named a finalist in the Investment Banking Scholars Club (IBSC) 2016 Oil & Gas Investment Banking Case Competition.
Finance students Sarah Kuxhausen, Luu Vo, Matheus Nechar and Christian Manisck earned a second place finish and $500 scholarship at the competition, besting teams from other Texas universities.
During the competition, participants were tasked with preparing a valuation and sales plan for an oilfield services company, Superior Energy Services. Alumni from IBSC then evaluated each presentation.
“We came up with a valuation range, potential strategic and financial buyers who could be interested in the deal, and we put together an industry outlook,” Nechar said. “The main problem was bad timing because the oil and gas industry wasn’t looking too good at this time, so we couldn’t maximize the sale price of the company.”
Despite challenges, the team welcomed the opportunity because it allowed them to practice their modeling skills on a real world scenario, Nechar said.
“The whole competition was an exercise in thinking outside the box,” Vo added. “We weren’t given specific guidelines, and we weren’t given an assignment that was easy. This was something that was purposefully built to be hard — to sell an OFS company a few months ago before the OPEC meeting that caused oil prices to bounce.”
Prior to submitting their proposal, the students consulted with a faculty member and peers for guidance, while applying their in-class knowledge to the case.
“All the finance classes I took, such as two that I’m taking right now (a corporate finance class and corporate equity and investment banking class) were very helpful in the modeling aspect of the case,” Nechar said.
Kuxhausen added: “It was a great experience from an interpersonal standpoint, and it was great from a modeling standpoint. It also definitely enhances your own marketability in the labor market. I’d encourage anyone to participate even if they didn’t think they had the capability. This is a great way to enhance your skills.”
By Priscilla Aceves