Hi,
This is a question from Bain sample case. I attach the question and relevant graphs below. Would appreciate if someone can give me hints on how to solve this problem. Thank you very much!
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Hi Floyd, thank you for your answer. It is very clear for me right now. I thought the 100m in sales where for the entire players. The link where i found the business case is the following : https://mconsultingprep.com/wp-content/uploads/2019/10/Business-Case-Test-2-Question-fixed.pdf
Would you please share the sample with me, thanks!
Hello, the link for the business case is the following : https://mconsultingprep.com/wp-content/uploads/2019/10/Business-Case-Test-2-Question-fixed.pdf
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The answer is very easy:
1. Calculate the EBITDA from company A= 100m * 16% = 16 m
2. Calculate the revenues from company B and company C. For that you need to calculate the revenues for each company. Solving the following equations:
RMS = market share company / market share leader (1)
Market share * Market size = Revenues company (2)
So we have:
Revenues A = Market share A * Market size
100 m / Market size = Market share A (3)
For company C:
0.6 = Market share C / Market share A
0.6 * Market share A = Market share C (4)
(3) in (4)
0.6 * 100m / market size = Market share C
60 m = market share C * market size
60 m = Revenue C
Following the same procedure for D:
50 M = Revenue D
So:
Total revenues = 50 m + 60 m = 110 m
3. Lets find the Initial EBITDA = 14,9 m
4. Lets now find the expected EBITDA . 110M * 16% = 17.6 m
4. Lets find the increase: 17.6 m - 14.9 m = 2.7 m
The answer is 2.7 m
Can you please message me? Thank you. Where did you get this sample btw?
1 comment
Hi there,
Floyd has laid it out perfectly!
If you're looking for more practice you can go here:
- https://www.preplounge.com/en/consulting-forum/bain-company-business-case-sample-3617
- https://www.preplounge.com/en/consulting-forum/bain-question-business-case-sample-6975
- https://www.preplounge.com/en/consulting-forum/bain-online-test-packaging-co-guidance-on-questions-6996
- https://www.preplounge.com/en/consulting-forum/bain-online-test-answer-guidance-for-grocery-retail-co-6933
- https://www.preplounge.com/en/consulting-forum/bain-business-case-9097
- https://www.preplounge.com/en/consulting-forum/bain-business-case-9113
- https://www.preplounge.com/en/consulting-forum/bain-business-case-9189
- https://www.preplounge.com/en/consulting-forum/bain-business-case-9221
- https://www.preplounge.com/en/consulting-forum/bain-business-case-9229
Hi,
I have several other samples in my library I use to work with my candidates. Feel free to text me to share some of them if useful (:
Best,
Antonello
Could you please share the source? Thanx!
GB
I agree with Floyd and his resolution here. Please post always the source of the case so that we can have a brief overview of the case before answering.
Best,
Luca
Hello!
+1 Floyd here, super educational!
Could you share the source? That would totally benefit he community.
Cheers,
Clara
