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Feasibility of M&As and Market Entry Strategies

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!

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Profile picture of Vlad
Vlad
Coach
edited on Dec 07, 2020
McKinsey / Accenture Alum / Got all BIG3 offers / Harvard Business School

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

Profile picture of Ian
Ian
Coach
on Dec 08, 2020
Top US BCG / MBB Coach - 5,000 sessions |Tech, Platinion, Big 4 | 9/9 personal interviews passed | 95% candidate success

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!

Profile picture of Antonello
on Dec 30, 2020
McKinsey | NASA | top 10 FT MBA professor for consulting interviews | 6+ years of coaching

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

Best,

Antonello

Profile picture of Clara
Clara
Coach
on Dec 08, 2020
McKinsey | Awarded professor at Master in Management @ IE | MBA at MIT |+180 students coached | Integrated FIT Guide aut

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