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!
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!
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?
Hi there,
Floyd has laid it out perfectly!
If you're looking for more practice you can go here:
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
Could you please share the source? Thanx!
GB
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
Hello!
+1 Floyd here, super educational!
Could you share the source? That would totally benefit he community.
Cheers,
Clara