Case Interview

Market Sizing

-distill top down or bottom up

-top down: start with large market and distill down to market

-bottom up: start with certain statistic within region, then extrapolate

Profitability buckets (broad)

-revenue

-cost

-market

Cost buckets

-fixed costs

-variable costs

Typical fixed costs

-Admin staff

-Rent

-Licensing and Insurance (bonus)

Typical variable costs

-Material costs

-Labour

-Distribution (bonus)

Mergers and Acquisitions considerations

-Value of company to be acquired

-Synergies

-financial cost of merge

-qualitative factors

Synergies

-total additional value that you can get as a combined company, cost and revenue

-cost ex: save on staff

-revenue ex: can get better deals

Market Entry Buckets

-Market Size

-Market Growth

-Potential Share

-Investment (cost to enter)

Recommendation Framework

1. Context

2. Findings

3. Recommendations

4. Risk

5. Potential Next steps

Top candidates’ structure

-3-4 High level buckets in their structure

-each bucket 3 data points that focus on data

Revenue buckets

Divide out company’s sources of income

Market buckets

-competition

-customers