Bain Mergers and Acquisitions Case Interview: Coffee Shop Acquisition
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- Опубликовано: 6 сен 2022
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A Bain-style case interview. What more needs to be said?
Enjoy this case where a former McKinsey Engagement Manager interviews a current Deloitte tech consultant. Can our candidate crack the case? You'll have to listen to find out.
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2:48 - Case prompt
3:11 - Recap by candidate
7:24 - Case framework
37:40 - Final recommendation
40:07 - Feedback by the interviewer
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The interviewer gave great insights
great case thanks
Would it not have made more sense to focus on the market first? Looking at historical performance by channel/price point or however the market is segmented, drivers, competitive landscape, consumers (drivers/KPCs etc) to see if it’s a good market to enter.
Then focus the shop, cost of opportunity/feasibility and then if time allows possible other alternatives?
you have a good valid point. there is no "right or wrong" in this :)
Wonder how to proceed to calculate NPV in this case? my approach is (5y-after-tax profit/discount rate - upfront cost), sounds right? upfront cost would be the purchasing price of the coffee shop.
Each year's profit should be discounted by its own discount rate equal to WACC to the power of the year
For NPV, you would discount the Free Cash Flow to the Firm (FCFF) for the projected period including the terminal value.
@@karansidana1711 terminal value will not be relevant here. Terminal value for a 5+year horizon.
This could still be a good investment. Simple: Avoid the tax. Start a shell corporation (possibly in the Cayman Islands) that'll be the parent company of the coffee shop, then buy the coffee shop under that company.
This loophole to avoid tax has long been patched up since 2009. Not going to work anymore haha
I like the sound of this strat though. Earnings. Falls under the expense reduction bucket. Tax is an expense. It is reduced.
@@Unknowledgeable1 Funny I commented on this when I was recruiting; now I'm an incoming summer associate at BCG ;)
@@jollyholly2851 ruclips.net/user/shortsZB2ZZubWxDs?feature=share
@@jollyholly2851
Let's gooooo!