Feasibility of M&As and Market Entry Strategies

Question

Hi all,

should I cover the feasibily (e. g. financial resources) of M&As and market entry strategies during the questions after the interviewer introduced the problem or should it be part of my structure? What would be a best practice?

Thanks a ton!

Answer 1

Hi,

It depends on what you call feasibility.

For M&A cases in the clarifying questions section, I will look at whether we will have any synergies with the current portfolio

For the M&A cases you can make a bucket called Feasibility of exit and look at:

Exit multiples
Exit time
Amount to invest
Availability of buyers
Risks

For market entry cases in the clarifying questions section, I will look at whether we are planing organic / non-organic entry mode

In the structure, I will put a separate bucket called entry strategy, looking at:

Are we achieving the entry objective?
Required time
Required investments
Risks

Best

Answer 2

Hi there,

Sorry to say, but it genuinely depends!

If the prompt is along the lines of "We're looking to evaluate x acquisition" or "We're evaluating a range of acquisitions", or "We're determining how to enter this market between acquisition, JV, and organic", you could reasonably ask "What funds do we have to allocate to this?".

Otherwise, feasibilty should indeed be part of your framework. Up to you as to whether it is its own bucket or embedded within a bucket like "deal logistics" or "synergies/dis-synergies" etc. etc.

Importantly, there are few hard-and-fast rules for specific framework buckets...it depends on the prompt!

Answer 3

Hi, I confirm there is not a golden rule but strictly depends on the questions and on the client's objective

Best,

Antonello

Answer 4

Hello!

It depends, both can be good and help to the case.

Without more context, I would include it as one of the risks / qualitative parts of the case. Precisely M&A cases are full in details and nuaces in everything that goes beyond economics.

Hope it helps!

Cheers,

Clara