Hello everyone,
What would a great structure to assess start-ups like self-driving?Would 3C1P work in this case?
Thank you in advance.
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[Case Solving] Valuation: what are the factors you could used to assess a start-up
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Hi there,
each of us can eventually a use different approach to solving the case… this is precisely what consulting looks for, not standardized frameworks (that usually limit the options), but a new way and out of the box ideas, eventually a combination of different frameworks that would fit this particular case… If standardized frameworks would solve complex problems that MBB solve, companies will unlikely to hire them.
I would recommend putting the CEO hut and thinking how would you approach it if you would want to buy such a start-up? What things would you look at to maximize the investment?
Good luck,
Lucie
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Hey there,
My clarification question to the interviewer would be:
Do we want to put a value on the company or just list qualitatitive factors that we should look at?
If you want to create a valuation, you would for instance need to estimate the earnings potential of the company (including a multiple). In that case, 3C1P would not work but rather a type of market sizing approach including a plausible market share assumption for the company.
If you want to qualitatively evaluate the business, 3C1P could work but likely won't impress the MBB interviewer. Case interviews for top-tier firms are about understanding a problem and deriving a creative approach / solution, not about memorizing frameworks or books.
Try to come up with your own approach and be sure to make it very concrete and tailored to the situation.
Cheers,
Florian
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Hi there,
It's going to depend on the context of the start-up and the answers to my clarifying questions!
The 4 Ps can work. As can Market/Product/Customer/Competition. You can use a financial model leveraging current + projected cashflows. You can do external/internal.
Many options here!
(edited)
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Hello!
In these cases I always tell the same: why don´t you give it a shot, write your response as if this was the interview day and then ask the community? I assure you that you will learn so much more this way, and it will prep you better for interview day.
Cheers,
Clara
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