Consulting Q&A – Ask Questions about Your Career

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Investment Case Framework

Framework Investment Opportunity cost Synergies
Most recent answer on Dec 16, 2023
The best answer (on Dec 11, 2023) is from:
Lorenzo
Expert
University of St.Gallen graduate | Learn to think like a Consultant | Personalized prep | CV review
Lorenzo
Expert
gave the best answer on Dec 11, 2023
University of St.Gallen graduate | Learn to think like a Consultant | Personalized prep | CV review
1. Analysis of Revenue and Cost Synergies: Placement: Typically, the analysis of revenue and cost synergies would be a crucial part of the overall financial analysis in an investment scenario. This could be part of the d ... (read entire answer)
7
Answers
300
Views
79
Total Upvotes
on Dec 16, 2023 on Dec 16, 2023
Last Activity

Synergies framework

M&A Synergies
Most recent answer on Nov 13, 2023
The best answer (on Nov 13, 2023) is from:
Clara
Expert
McKinsey | Awarded professor at Master in Management @ IE | MBA at MIT |+180 students coached | Integrated FIT Guide aut
Clara
Expert
gave the best answer on Nov 13, 2023
McKinsey | Awarded professor at Master in Management @ IE | MBA at MIT |+180 students coached | Integrated FIT Guide aut
Hello! Precisely for the high amount of questions (1) asked by my coachees and students and (2) present in this Q&A, I created the “Math & Formulas - Economic and Financial concepts for MBB interviews”, recently ... (read entire answer)
4
Answers
4.2 k
Views
21
Total Upvotes
on Nov 13, 2023 on Nov 13, 2023
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Synergy questions

Synergies
Most recent answer on Jul 31, 2022
The best answer (on Jul 25, 2022) is from:
Ian
Expert
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate
Ian
Expert
gave the best answer on Jul 25, 2022
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate
Hi there, The simplest way to think about Synergies is that it's essentially how two companies can help each other. As in, how can one company leverage its strengths to add value to the other. Without synergies 1+1 = 2. ... (read entire answer)
6
Answers
1.6 k
Views
61
Total Upvotes
on Jul 31, 2022 on Jul 31, 2022
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Quantify/Calculate Synergies - Formulae

Synergies
Most recent answer on Oct 06, 2021
The best answer (on Oct 02, 2021) is from:
Pedro
Expert
30% off in March 2024 | Bain | EY-Parthenon | Roland Berger | Market Sizing | DARDEN MBA
Pedro
Expert
gave the best answer on Oct 02, 2021
30% off in March 2024 | Bain | EY-Parthenon | Roland Berger | Market Sizing | DARDEN MBA
It's difficult to give a complete answer to this, so let me mention a few relevant points and maybe other coaches can complete the answer: At a high level you compare the Merged company profitability with the “As is” co ... (read entire answer)
3
Answers
800
Views
26
Total Upvotes
on Oct 06, 2021 on Oct 06, 2021
Last Activity

Should PE firm buy a company

Synergies
Most recent answer on Jul 03, 2021
The best answer (on Jul 02, 2021) is from:
Ian
Expert
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate
Ian
Expert
gave the best answer on Jul 02, 2021
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate
Hi there, Synergies can only exist between two entities! So, you can only use synergies if this PE firm is explicitly looking to acquire multiple companies and combine them. Otherwise, you cannot have a synergies bu ... (read entire answer)
4
Answers
1.2 k
Views
57
Total Upvotes
on Jul 03, 2021 on Jul 03, 2021
Last Activity

Synergy types

Synergies
Most recent answer on Jun 26, 2021
The best answer (on Jun 26, 2021) is from:
Ian
Expert
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate
Ian
Expert
gave the best answer on Jun 26, 2021
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate
Hi there, 1)Are there other synergies besides cost and revenue you need to think about in M&A cases? Yes and no. R and C is a fair structure to have. However, the more you can show your industry and case-specifi ... (read entire answer)
2
Answers
993
Views
26
Total Upvotes
on Jun 26, 2021 on Jun 26, 2021
Last Activity

Synergies between big company and startup

Synergies
Most recent answer on May 24, 2021
The best answer (on May 24, 2021) is from:
Ian
Expert
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate
Ian
Expert
gave the best answer on May 24, 2021
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate
Hi there, In general, I like to break down synergies into Revenue uplift and Cost reduction. Non-exhaustive examples include: Revenue Uplift Charge higher prices Seller power Analytics allowing better ... (read entire answer)
3
Answers
767
Views
29
Total Upvotes
on May 24, 2021 on May 24, 2021
Last Activity

Synergies in M&A

M&A M&A Case Synergies
Most recent answer on Apr 10, 2021
The best answer (on Apr 10, 2021) is from:
Ian
Expert
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate
Ian
Expert
gave the best answer on Apr 10, 2021
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate
This is case specific. You need to learn how to think about these cases on their own! Learn your industries, practice creative thinking, and apply this to your casing. There's no 1 answer here. https://www.preplounge. ... (read entire answer)
2
Answers
1.3 k
Views
31
Total Upvotes
on Apr 10, 2021 on Apr 10, 2021
Last Activity

M&A synergies

Case Interview M&A Case Synergies
Most recent answer on Apr 09, 2021
The best answer (on Apr 08, 2021) is from:
Francesco
Expert
#1 Coach for Sessions (4.000+) | 1.500+ 5-Star Reviews | Proven Success (➡ InterviewOffers.com) | Ex BCG | 10Y+ Coaching
Francesco
Expert
gave the best answer on Apr 08, 2021
#1 Coach for Sessions (4.000+) | 1.500+ 5-Star Reviews | Proven Success (➡ InterviewOffers.com) | Ex BCG | 10Y+ Coaching
Hi there, I would not list all the synergies in the initial structure – that would indeed take too much time. What I would recommend is to: Present the synergies with an initial level (eg “In terms of synergies, ... (read entire answer)
6
Answers
2.0 k
Views
34
Total Upvotes
on Apr 09, 2021 on Apr 09, 2021
Last Activity

Is costumer base overlapping attractive in a M&A scenario? What happens to cross-selling?

Actively preparing for upcoming interviews with Mckinsey AT Kearney & Bains. Looking to take and give great feedback. BCG BCG Bain McKinsey customer HelpASisterOut M&A MBB Synergies
Most recent answer on May 22, 2020
The best answer (on Apr 15, 2020) is from:
Francesco
Expert
#1 Coach for Sessions (4.000+) | 1.500+ 5-Star Reviews | Proven Success (➡ InterviewOffers.com) | Ex BCG | 10Y+ Coaching
Francesco
Expert
gave the best answer on Apr 15, 2020
#1 Coach for Sessions (4.000+) | 1.500+ 5-Star Reviews | Proven Success (➡ InterviewOffers.com) | Ex BCG | 10Y+ Coaching
Hi there, as mentioned by Vlad and Robert, it depends on the products and possibly also on the ancillary services offered. You may have different situations, for examples: Complementary products (eg hotel services ... (read entire answer)
8
Answers
1.9 k
Views
33
Total Upvotes
on May 22, 2020 on May 22, 2020
Last Activity

M&A cases - synergy examples

M&A Synergies
Recent activity on May 01, 2019
The best answer (on May 01, 2019) is from:
Vlad
Expert
McKinsey / Accenture Alum / Got all BIG3 offers / Harvard Business School
Vlad
Expert
gave the best answer on May 01, 2019
McKinsey / Accenture Alum / Got all BIG3 offers / Harvard Business School
Hi, For Synergies Calculation cases you can use the following structure: Revenue synergies - here you calculate the synergies in price and quantity (depending on the case it may be new geographies, new products, n ... (read entire answer)
1
Answer
4.5 k
Views
4
Total Upvotes
on May 01, 2019 on May 01, 2019
Last Activity

Synergies - M&A Case

M&A Synergies
Recent activity on Apr 26, 2019
The best answer (on Sep 01, 2018) is from:
Francesco
Expert
#1 Coach for Sessions (4.000+) | 1.500+ 5-Star Reviews | Proven Success (➡ InterviewOffers.com) | Ex BCG | 10Y+ Coaching
Francesco
Expert
gave the best answer on Sep 01, 2018
#1 Coach for Sessions (4.000+) | 1.500+ 5-Star Reviews | Proven Success (➡ InterviewOffers.com) | Ex BCG | 10Y+ Coaching
Hi Anonymous, I would always start with a theoretical approach before the actual analysis of the income statement. A potential structure could be the following: Revenue synergies: Increase price Increase th ... (read entire answer)
4
Answers
7.9 k
Views
14
Total Upvotes
on Apr 26, 2019 on Apr 26, 2019
Last Activity

Is economies of scale a synergy effect?

Economies of Scale Synergies
Recent activity on Oct 12, 2018
The best answer (on Oct 12, 2018) is from:
Vlad
Expert
McKinsey / Accenture Alum / Got all BIG3 offers / Harvard Business School
Vlad
Expert
gave the best answer on Oct 12, 2018
McKinsey / Accenture Alum / Got all BIG3 offers / Harvard Business School
Hi, Yes, definitely. It will be part of the cost synergies. For Synergies Calculation you can use the following structure: Revenue synergies - here you calculate the synergies in price and quantity (depending on ... (read entire answer)
4
Answers
5.4 k
Views
5
Total Upvotes
on Oct 12, 2018 on Oct 12, 2018
Last Activity
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