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In case you missed it, read last week’s issue here

A Quiet Period for Deals, But the Fed Looms

M&A activity continued to lag this week, especially in the middle-market segment, as uncertainty over interest rate policy kept corporate buyers cautious. All eyes are on the Fed’s next meeting—some expect a signal toward cuts as inflation moderates. A friendlier rate environment could reignite leveraged buyouts and acquisition financing, especially in Q3. Until then, deal teams are focusing more on due diligence and pipeline building than active execution.
Why it matters: The cost of capital directly affects how deals are structured and priced. If rates drop, expect to see an uptick in activity across both public and private markets.

Tip: In interviews, tie macro trends (like the Fed) to your understanding of how real deals work. It shows maturity in your thinking.

KPMG’s Consulting Arm Launches GenAI Academy

KPMG has announced a major internal training initiative: a global Generative AI certification academy for consultants and auditors. This move signals that the Big Four are investing heavily in digital transformation, not just in tech advisory, but across all service lines. Expect AI literacy (especially prompt engineering, automation, and workflow optimization) to become a core competency in consulting and even audit over the next few years.

Student Takeaway: This is the third week in a row that AI has been mentioned in campus capital, I cannot stress enough it’s importance. The sooner you take notice and understand it’s effects and uses in the finance world, the greater the separation will be between you and your competition in interviews. AI is no longer just a buzzword — it’s becoming a competitive differentiator in client service and firm capabilities.

Definition: The accounting principle that dictates when and how revenue is recorded on the income statement. Under GAAP (ASC 606), companies must recognize revenue when performance obligations are satisfied — not necessarily when cash is received.

Scenario: A software company, Dataflow Inc., sells a 12-month software subscription to a corporate client on January 1st, 2025, for $12,000, paid upfront.

❌ Incorrect (cash-based view):
The company receives $12,000 in January and recognizes all of it as revenue in Q1.

✅ Correct (accrual-based, ASC 606):
The company must recognize $1,000 per month over the 12-month subscription period, because the service is delivered over time, not all at once.

The remaining unearned portion of the payment is recorded as a deferred revenue liability on the balance sheet until it’s earned.

Why Utilization Rate Matters: It impacts how earnings are reported and can materially affect valuations, especially for SaaS and service-based businesses.

Mistake: Skipping over your thought process to get to “the right answer.”

In both case and technical interviews, students often rush to spit out memorized definitions or numbers. But interviewers are less interested in memorization than how you think under pressure.

Let’s say you’re asked: “How would you assess whether a business is a good LBO candidate?” Don’t list five bullet points — walk through your logic:

That thinking process is what wins offers.

As you prep for any big interview, don’t just read — rehearse. Take technical or behavioral questions and answer them out loud, even if you’re alone. Listening to your voice will help you catch filler words, logic gaps, or flat delivery.

Great candidates sound confident not because they’re smarter — but because they’ve practiced sounding confident. It’s a skill.

Pro tip: Record yourself answering a tough question (like “Why this firm?” or “Tell me about a time you failed”) and critique it like a recruiter would.

Bonus: Strong communication is the #1 differentiator in interviews — especially for client-facing roles.

Back November of 2023, Bain Capital announced a $5.3B acquisition of Guidehouse, a consulting firm with roots in public sector advisory and risk management. The deal signals Bain’s interest in long-term government contracts and high-margin consulting cash flows, even during slow M&A cycles.

Guidehouse’s stable EBITDA and recurring revenues made it a perfect LBO target. In general, the deal itself showed more private equity interest in consulting and advisory firms with sticky clients and low capex.

Yes this deal happened nearly 2 years ago, it’s relevance? It’s a textbook example of a private equity company wanting to expand it’s presence in the professional services industry.

This summer is your pre-season. How you build knowledge and habits now determines whether you walk into interviews reactive — or ready. Learning about revenue recognition or ESG disclosure might not feel flashy, but it’s these details that make you sharp in interviews and respected on the job.

You’re investing in yourself — and that’s the most valuable position you can take.

Welcome to Campus Capital. Each week, we’ll break down the finance world in 5 minutes or less.
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My name is Braunsen Bax, I’m a honors finance and accounting student-athlete at North Central College in Naperville, Illinois (45 mins outside of Chicago). I graduated from Walton High School in Marietta Georgia. Outside of the classroom I compete in the throws events for the Track & Field team, 35 time NCAA DIII national champions. I’ve had a love of finance and the business world since my sophomore year of high school and started Campus Capital to share that love with my community and like minded individuals in a similar position, with similar goals. My mission is to help people like me shape their futures to ensure they reach their goals while being up to date and educated in the Finance industry.