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Need a sample of Case study for KPMG Transaction Services Interview please.

KPMG
Letzte Aktivität am 24. Okt. 2018
1 Antwort
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Anonym A fragte am 24. Okt. 2018

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Vlad
Experte
antwortete am 24. Okt. 2018
McKinsey / Accenture Alum / Got all BIG3 offers / Harvard Business School

Hi,

Don't have a sample, however, can give you some tips.

While the basic consulting services have mainly classic cases (Market sizing, profitability, market situation, etc), financial consulting may have specialized cases as well. For example, Transaction has M&A cases (Basic accounting, Due diligence, calculating NPV on paper, calculating Stock basis and earnings & profits, etc).

The cases will be much more detailed in the financial part. Depending on the company you'll need to:

  • Find the relevant information in P&L and Balance sheet
  • Do the simplified valuation using NPV: calculate cash flows and make assumptions about growth rate and discount rate
  • Do the valuation using comps - you'll have to explain which comps you will use and why
  • Calculate the share splits and price per share

I recommend finding someone from that practice and check the details of the interview in the particular department

Here are some good frameworks you may use:

1. For commercial DD 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:

  • Exit multiples
  • Exit time
  • Existence of buyers

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

  1. 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.)
  2. Cost synergies - typically you use a value chain structure tailored to the industry (e.g. supply-production-distribution-marketing-after sales support)
  3. Financial synergies - access to capital, restructuring, etc
  4. Risks - major risks that can decrease the synergies (tip: don't underestimate the merging companies culture factor)
  5. Total synergies potential in $, adjusted by risk (probability of failure)

Good luck!

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o am 24. Okt. 2018

Thanks

Vlad

McKinsey / Accenture Alum / Got all BIG3 offers / Harvard Business School
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