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Estimation: You recently considered buying Greenland. How much would you pay for it?

I got this case recently in a real interview with Oliver Wyman. The interviewer did not provide any information about Greenland and wanted me to come up with all the ideas and estimate everything.

Hope that someone of you can help me in solving this case.

I got this case recently in a real interview with Oliver Wyman. The interviewer did not provide any information about Greenland and wanted me to come up with all the ideas and estimate everything.

Hope that someone of you can help me in solving this case.

2 answers

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Hi,

Several approaches:

  • The fair value of land / buildings equipment
  • NPV from potential natural resources extraction
  • Benchmarking the territory with comparable transactions (Islands sold)
  • Alternative use of land - maybe there is a commercial use of this land, that makes the value much higher than it currently is. E.g. the potential usage can be a military base and you can benchmark how much the countries are paying for seting up these bases abroad

Best

Hi,

Several approaches:

  • The fair value of land / buildings equipment
  • NPV from potential natural resources extraction
  • Benchmarking the territory with comparable transactions (Islands sold)
  • Alternative use of land - maybe there is a commercial use of this land, that makes the value much higher than it currently is. E.g. the potential usage can be a military base and you can benchmark how much the countries are paying for seting up these bases abroad

Best

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