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Bain Business Case Test Answer

Hi,

This is a question from Bain sample case. I attach the question and relevant graphs below. Would appreciate if someone can give me hints on how to solve this problem. Thank you very much!

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Top answer
edited on Feb 28, 2021

The answer is very easy:

1. Calculate the EBITDA from company A= 100m * 16% = 16 m

2. Calculate the revenues from company B and company C. For that you need to calculate the revenues for each company. Solving the following equations:

RMS = market share company / market share leader (1)
Market share * Market size = Revenues company (2)

So we have:

Revenues A = Market share A * Market size
100 m / Market size = Market share A (3)

For company C:

0.6 = Market share C / Market share A
0.6 * Market share A = Market share C (4)

(3) in (4)

0.6 * 100m / market size = Market share C
60 m = market share C * market size
60 m = Revenue C

Following the same procedure for D:

50 M = Revenue D

So:

Total revenues = 50 m + 60 m = 110 m

3. Lets find the Initial EBITDA = 14,9 m

4. Lets now find the expected EBITDA . 110M * 16% = 17.6 m

4. Lets find the increase: 17.6 m - 14.9 m = 2.7 m

The answer is 2.7 m
 

Can you please message me? Thank you. Where did you get this sample btw?

21
Anonymous A
on Feb 28, 2021
Hi Floyd, thank you for your answer. It is very clear for me right now. I thought the 100m in sales where for the entire players. The link where i found the business case is the following : https://mconsultingprep.com/wp-content/uploads/2019/10/Business-Case-Test-2-Question-fixed.pdf
Ian
Coach
edited on Feb 28, 2021
Top US BCG / MBB Coach - 5,000 sessions |Tech, Platinion, Big 4 | 9/9 personal interviews passed | 95% candidate success

Hi there,

Floyd has laid it out perfectly!

If you're looking for more practice you can go here:

  • https://www.preplounge.com/en/consulting-forum/bain-company-business-case-sample-3617
  • https://www.preplounge.com/en/consulting-forum/bain-question-business-case-sample-6975
  • https://www.preplounge.com/en/consulting-forum/bain-online-test-packaging-co-guidance-on-questions-6996
  • https://www.preplounge.com/en/consulting-forum/bain-online-test-answer-guidance-for-grocery-retail-co-6933
  • https://www.preplounge.com/en/consulting-forum/bain-business-case-9097
  • https://www.preplounge.com/en/consulting-forum/bain-business-case-9113
  • https://www.preplounge.com/en/consulting-forum/bain-business-case-9189
  • https://www.preplounge.com/en/consulting-forum/bain-business-case-9221
  • https://www.preplounge.com/en/consulting-forum/bain-business-case-9229
on Feb 28, 2021
McKinsey | NASA | top 10 FT MBA professor for consulting interviews | 6+ years of coaching

Hi,
I have several other samples in my library I use to work with my candidates. Feel free to text me to share some of them if useful  (:

Best,
Antonello

on Jan 31, 2022
Would you please share the sample with me, thanks!
Gaurav
Coach
on Feb 28, 2021
#1 MBB Coach(Placed 750+ in MBBs & 1250+ in Tier2)| The Only 360° coach(Ex-McKinsey+Certified Coach+Active recruiter)

Could you please share the source? Thanx!

GB

Anonymous A
on Feb 28, 2021
Hello, the link for the business case is the following : https://mconsultingprep.com/wp-content/uploads/2019/10/Business-Case-Test-2-Question-fixed.pdf
Luca
Coach
on Feb 28, 2021
BCG |NASA | SDA Bocconi & Cattolica partner | GMAT expert 780/800 score | 200+ students coached

I agree with Floyd and his resolution here. Please post always the source of the case so that we can have a brief overview of the case before answering.

Best,
Luca 

Clara
Coach
on Mar 01, 2021
McKinsey | Awarded professor at Master in Management @ IE | MBA at MIT |+180 students coached | Integrated FIT Guide aut

Hello!

+1 Floyd here, super educational!

Could you share the source? That would totally benefit he community. 

Cheers, 

Clara

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