Assume you are asked whether disinvesting (aka shutting down) a particular line of business makes sense.
There are a couple of different angles you might want to consider here:
All of these aspects should be succinctly outlined and then assessed (one by one (in order of priority according to your hypothesis or following guidance by the interviewer).
Hope this is helpful - let me know if you want to discuss deeper.
On top of the great responses below, I would add a couple of considerations:
Hope it helps!
The right approach depends on the landscape situation, but generally speaking you have to consider both qualitative (e.g. how could you reinvest the money?) and quantitative aspects.
The standard way to do the quantitative analysis is to compare the selling price with the future cashflows (considering also the discount rate).
Feel free to text me if you want to discuss it further.
you should evaluate both quantitative and qualitative aspects. Talking about quantitative ones, you should compare the selling price with the present value (obtained by all the expected future profits)