Experte mit der besten Antwort


100% Empfehlungsrate

297 Meetings

1.757 Q&A Upvotes

319 USD / Coaching

Starting with Financials

Anonym A fragte am 10. Jan 2019

What is an ideal way to start a structure whether it be market entry, investment, or profitability?

Is it okay to start with the financials to evaluate if it numerically makes sense to invest, enter market, and then evalue the market, company itself, etc?

Or should you analyze the market, and company first to see if its big enough and we have key capabilities, and then do the math?

3 Antworten

  • Upvotes
  • Datum aufsteigend
  • Datum absteigend
Beste Antwort
bearbeitete seine Antwort am 10. Jan 2019
McKinsey Engagement Manager & BCG Consultant | Interviewer at McK & BCG for 7 years | Coached 90+ candidates secure MBB offers
Coaching mit Sidi vereinbaren

100% Empfehlungsrate

297 Meetings

1.757 Q&A Upvotes

319 USD / Coaching

Hi Anonymous,

the market, the company, the customer preferences etc. all play into the financials. The financials are DRIVEN by these factors! So you need to outline the numerical driver tree, and then connect the aforementioned factors to the metrics and sub-metrics in your tree. Then in analyzing, you need to examine the market, customer preferences etc. in order to derive the financials.

Cheers, Sidi


Vlad antwortete am 10. Jan 2019
McKinsey / Accenture / Got all BIG3 offers / More than 300 real MBB cases / Harvard Business School
Coaching mit Vlad vereinbaren

97% Empfehlungsrate

346 Meetings

4.778 Q&A Upvotes

319 USD / Coaching


Whatever you are assessing you are assessing with the numbers. How can you assess the investment without the market / company growth rate? As far as I remember it's the part of the DCF valuation formula:)


antwortete am 10. Jan 2019
Ex-MBB, Experienced Hire; I will teach you not only the how, but also the why of case interviews
Coaching mit Guennael vereinbaren

99% Empfehlungsrate

246 Meetings

1.230 Q&A Upvotes

319 USD / Coaching

I think you can go either way. Personally, I like to understand the bigger picture so typically start with a business-focused framework; others will prefer to dive into the numbers right away. Both work, just make sure to be MECE and address the relevant paramaters (revenue / demand, costs, trends, risks, capabilities...)