Structure: What is the required depth and specificness of McKinsey frameworks?

Hi all,

often heard McKinsey requires very broad while very specific framework, what does that mean?

Example Case Question: Client wants to acquire a firm and has three targets between which he needs to decide (all in different industries, Hospital Software, Website development, inventory software):

Question 1: How to approach this problem?

"Would look into:

1) Market attractivity:

Dynamics:

• How big are the different market segments?
• What is their growth?
• What is the outlook over the next years, any major trends?

Competition:

• What is the competitive situation? (Concentration, USP of competition, their reactions)
• What is the market share of the target in the respective market?

Customer:

• Which segments are there?
• What drives their demand, what is their willingness to pay?

Entry Barriers:

• Are there any entry barriers in the specific market (i.e. regulatory constraints like required health care licenses)

2) Target positioning within market

• What products/services does the target offer? (USP, patents)
• Where do they sell their products (overlap with client somewhere?)
• What's the image of the company in the market?
• Do they focus on specific customer segments within market? (how do they compare to our client?)
• How is the target culture? (how compared to our client?)
• What is the ownership structure (private, public?)

3) Financial attractivity

Expected revenues:

• Revenues generated by target
• Sales synergies (i.e. cross-selling potential, cannibalization potential)

Expected costs:

• Price of target/ upfront investment costs
• Recurring costs of target operation
• Cost synergies (i.e. best practice sharing, economies of scale etc.)

Compare ROI, payback time, NPV of targets

4) Company + Capabilities

• What products, customer segment and geographies do we serve?
• What would add value to our existing customers? (i.e. do we already have hospitals, we can now sell additional software?)
• Acquisition experience?
• Financial warchest (can we acquire only one or several firms)"

Would a structure like this be too broad?

Thanks in advance.

(edited)