Accenture M&A Strategy

Question

Hey guys,

Does anyone have experience in interviewing with the Accenture M&A Strategy team? I had a phone interview and will now have a day of interviews (which should be the single and final round) and not sure what to expect.

Thanks a lot!

Answer 1

Hi,

In addition to standard cases (Marketsizing, profitability, market entry), you may have specific cases related to M&A:

There are two types of frameworks you may use:

Commercial due-diligence of the target company
Synergies calculation of two merging companies
Integration of the 2 companies

Note also that it can be a mix of both.

1. For Due Diligence you can use the following structure:

Market

Size
Growth rates
Profitability
Segments
Distribution channels

Competition

Market shares of competitors and their segments (see the next point)
Concentration / fragmentation (Fragmented market with lots of small players is less mature and easier to enter from a scratch. Concentrated market is hard to enter but has potential acquisition targets)
Unit economics of the players (Margins, relative cost position)
Key capabilities of the players (e.g. suppliers, assets, IP, etc)

Company

Unit economics (Margins, costs) in current or target markets
Brand
Product mix
Key capabilities

Feasibility of exit (in case of a PE company):

Exit multiples
Exit time
Existence of buyers
Risks

2. For Synergies Calculation you can use the following structure:

Revenue synergies - here you calculate the synergies in price and quantity (depending on the case it may be new geographies, new products, new distribution channels, bigger share on shelves crosselling opportunities, etc.)
Cost synergies - typically you use a value chain structure tailored to the industry (e.g. supply-production-distribution-marketing-after sales support)
Financial synergies - working capital, capital structure, tax
Risks - major risks that can decrease the synergies (tip: don't underestimate the merging companies culture factor)
Total synergies potential in $, adjusted by risk (probability of failure)

3. Integration cases can be either about integrating the IT systems, different functions or changing the org structure. Always remember to start with clarifying the objective and the timing of the deal / integration

Good luck!