[Case Solving] Valuation: what are the factors you could used to assess a start-up

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

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)

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