Synthesis - Yes or No Questions

Hi,

Indeed, in many cases, you can't provide a definite answer. Consultants may be testing several things:

• Are you comfortable enough with providing preliminary recommendations based on limited data? (Imagine a CEO whom you met in the elevator and who wants to know the preliminary findings)
• Will you make a mistake of providing a recommendation with a high level of certainty without having a proper supporting data?

Imagine a case when you have to make a decision whether a PE fund should acquire a company. You make a proper structure (Market, Competitors, Company, Feasibility of Exit) and in 25 min of a case, you've managed only to go through the Market and Competitors branches of the analysis. What will be your recommendation?

Here is how you should approach this problem:

1. You start with an objective ("Our objective was to understand whether we should by this company")
2. You provide a preliminary recommendation highlighting the uncertainty ("According to the limited data we have so far, our preliminary recommendation is to buy this company and there are three reasons for that...")
3. You provide the reasons ("First of all the market is big at X and growing at Y, Secondly the competition is fragmented with the target company having x% of the market. Thirdly...")
4. You Mention what pieces of data you need to provide a full recommendation ("Additionally, to come up with a recommendation I would like to look at the company financials, key capabilities and...")

Best,

Vlad

Hi there, 

The second option you gave is correct. It's good to throw in a line after "Yes/No" summarizing why. 

Here's an example script: "Yes, we should buy company X. The market is attractive and the company is priced below value. Before pulling the trigger, we need to confirm three things - A, B, and C." 

Hope that helps!