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Case Framework for regional expansion / Private Equity

market entry Private Equity
Neue Antwort am 20. Apr. 2023
5 Antworten
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Anonym A fragte am 19. Apr. 2023

The case promt involves comparing four countries to determine which one would be best for acquiring a bakery chain from view of an PE investor.

The framework I came up with so far consists of several factors which I would use to rank each country (1-4) and make a recommendation.

  • The first set of factors focuses on the market itself:
    • Market size
    • Market growth potential (market maturity)
    • Average profitability
  • The second set of factors looks at the provider landscape:
    • Number of players in the market
    • Market shares of each player
    • Degree of competition
  • Additional factors I think to consider include:
    • Trends in customer behavior and demographics
    • Market segmentation based on different customer groups (premium, middle, and mainstream)
    • Availability of potential target companies
    • Regulatory environment (including taxes and other relevant laws)

The challenge is to create a framework that is MECE and easy to present. I am very thankful for any input on this. 

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Cristian
Experte
Content Creator
antwortete am 19. Apr. 2023
#1 rated MBB & McKinsey Coach

Hi there, 

This is a good starting point. I like the idea of creating a set of criteria. It would be great if you could detail it a bit more so we could actually give you feedback on the content at a higher granularity. 

What you could also experiment with is developing a process-based or project-plan structure. So what would be the main phases that you would go through in order to assess which country would be the best? e.g., First you'd want to set some objectives, then…

Best,
Cristian

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Hagen
Experte
Content Creator
bearbeitete eine Antwort am 19. Apr. 2023
#1 Bain coach | >95% success rate | interviewer for 8+ years | mentor and coach for 7+ years

Hi there,

I think this is an interesting question that may be relevant for many people. I would be happy to share my thoughts on it:

  • First of all, I think that your initial structure covers most aspects of a market in a good way, yet it does not fully take into account that the client is a private equity company.
  • For instance, given that there is limited information about the client, I would advise you to first clarify what types of investment the client normally makes (e.g., buy & build, turnaround). Depending on the outcome, you should only focus on the relevant aspects for the specific type of investment, instead of working through every single aspect of the market, whether relevant or not.
  • Lastly, please keep in mind to provide a rationale for every aspect of your initial structure when presenting it (even if it is absolutely fine not to write it down in here).

If you would like a more detailed discussion on how to best structure any case study, please don't hesitate to contact me directly.

Best,

Hagen

(editiert)

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Ian
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Content Creator
antwortete am 20. Apr. 2023
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate

Hi there,

Please be careful with lists.

So, your answer is kind of “classic” for what you see online, but it's insuficient for truly passing an MBB interview.

Why?

Because you don't have the why. I don't know how this is going to help us answer the question.

Remember, you're saying this to the client. As such, I need to know how every single bucket/item fits together to help us figure out which country is best.

Here's a framework example from my course/coaching that should help:

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Pedro
Experte
bearbeitete eine Antwort am 19. Apr. 2023
30% off in April 2024 | Bain | EY-Parthenon | Roland Berger | Market Sizing | DARDEN MBA

You have to start with WHY. 

WHY you want to look at something is as (or even more) important as where you want to look at.

Not only you are not explaining the factors - you are also not considering what would be attractive for a PE firm. You are only looking at market attractiveness in general. In other words, you have to consider what would be a good investment (and what would be a good investment for that PE firm).

You have many investment possibilities. Do a buy & build (then you want many players), do a turnaround (then you are looking for distressed companies), focus on growth (then you want a growing market, and companies with high growth rates). So you have to go deeper on the availability of the potential targets and tie that to the potential investment thesis.

You are also not considering exit options. It's not just about how to buy, but also how to leave. I know, we're not analyzing a specific target, but you want to explore a few options: IPO, selling to a MNC, etc. So, for example, is the capitals market developed?

In short, your framework is in general ok, but the way it is deployed means that 90% of it could be used for other 100 cases. So this is what you really must do:

  • You need to explain why and how the things you mentioned are relevant to this case
  • You need to consider what are the specificities of the case being presented - and make sure they are considered in your answer. This is where  you get the OFFER.

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Anonym antwortete am 19. Apr. 2023

This is a great example of a bakery chain and I know you will find great answers because I can so well describe this:

- structure the solution into different parts, presenting the answers first and detail each one, this way you can already discuss the answers and determine the discussion

Best regards, 

 

 

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Cristian

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