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Post-acquisition cases

Bain Kearney MBB
New answer on Jul 30, 2021
5 Answers
1.2 k Views
Anonymous A asked on Jul 30, 2021

Hi, I have received 2 cases on post-acquisition - how to realize synergies - during my interviews with different tier-one consulting firms, and I did badly.

What is the framework to go with post-acquisition cases?

Thanks.

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Adi
Expert
Content Creator
replied on Jul 30, 2021
Accenture, Deloitte | Precision Case Prep | Experienced Interviewer & Career Coach | 15 years professional experience

Hey,

If your question is specific to synergies, you need to be clear on following aspects before you think of a framework and solution:

  • Are you looking at cost savings/revenue synergies once the two firms have merged?
  • or is your question about evaluating synergies to make a decision on go/no-go for M&A or for integration once the M&A is done?

Cost Saving & Revenue synergies

  • Complementary products/services
  • Supply chain synergies
  • Shared IT
  • People synergies (from CEO to ground staff)
  • Scale efficiencies/Capital

Evaluating synergies for go/no-go

  • Financial analysis
  • Customer segments
  • Product/Service mix
  • Supply Chain

Integration

  • Processes
  • People
  • IT stack

Pick out the most relevant ones depending on the case and elaborate on key points. No need to drill too much per area..1 or 2 examples are good enough. Keep your overall structure to 3-4 branches.

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Anonymous A on Jul 31, 2021

Thanks, I used Process People and Tool framework, however the interviewer said it was not MECE enough, as people can be under process as well. and for things like assets, offices that can be consolidated don't belong to any of the People Process IT bucket. Thanks.

Antonello
Expert
Content Creator
replied on Jul 30, 2021
McKinsey | NASA | top 10 FT MBA professor for consulting interviews | 6+ years of coaching

Hi, I have a couple of great M&A cases I usually work with. Feel free to text me

Best,
Antonello

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Ian
Expert
Content Creator
replied on Jul 30, 2021
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate

Hi there,

Essentially, you need to break it down into:

Option 1

1) Revenue uplift synergies (volume increase, price increase, etc....make it situation specific)

2) Cost reduction synergies (reduction in back-office through consolidation, COGS through buyer power, etc.)

3) Ability to realize synergies - costs to implementing, odds of being successful etc.

Option 2

1) People - who to hire/fire, how to re-organize, etc.

2) Processes - which processes to adopt, which to merge + how, etc.

3) Tools - which tools to implement from each company, which to integrate/merge and how, etc.

That said, this totally depends on the case and prompt itself!

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Anonymous A on Jul 31, 2021

Thanks, I used Process People and Tool framework, however the interviewer said it was not MECE enough, as people can be under process as well. and for things like assets, offices that can be consolidated don't belong to any of the People Process IT bucket. Thanks.

Anonymous replied on Jul 30, 2021

Hey there,

I will suggest not to learn a pre-determined framework; however some things you should think about:

  • Revenues sinergies (cross-selling, channels, new products)
  • Cost sinergies (raw material, production process, overhead, etc.)
  • Financial sinergies (interest rate negotiation, debt consolidation, etc.)

happy to practice some M&A cases if you need

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Agrim
Expert
Content Creator
replied on Jul 30, 2021
BCG Dubai Project Leader | Learn to think like a Consultant | Free personalised prep plan | 6+ years in Consulting

Happy to walk you through:

  • A solid post-M&A integration framework
  • Examples of real-life post-M&A integrations
  • Case interview practice of post-M&A
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Adi gave the best answer

Adi

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Accenture, Deloitte | Precision Case Prep | Experienced Interviewer & Career Coach | 15 years professional experience
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