By and large, M&A and PE cases are very similar, but there are differences:
Similarities: In both situations, the client considers buying an asset, so you need to assess the asset itself. Meaning market, competitors, positioning with taylored focus in your framework based on the case context and your own experience (if applicable) with the industry.
Differences: The key difference between M&A and PE is what your client does with the asset after the acquisition. While there are PE funds that have a portfolio approach and could have in mind to merge the asset withe one of their competitors, this is an exception rather than the rule. Typical post-acquisition strategies are include revenue growth or cost reduction from within (new sales approach, new product line, cutting administrative slack, etc.). The key question is: "What can you do with this company to make it more valuable?"
In an M&A setup, this is just the oppositve. Most corporate buyers buy the target with a very specific strategic vision: revenue or cost synergies with the existing business, complimenting customer segments, strategic market entries, etc. Key question here is: "Why is this company worth more to your client than to anybody else?"
In any of these cases, your framework should address the post acquisition (or merger) strategy, and it should identify the key issues upfront based on the context you get from the interviewer.
By and large, M&A and PE cases are very similar, but there are differences:
Similarities: In both situations, the client considers buying an asset, so you need to assess the asset itself. Meaning market, competitors, positioning with taylored focus in your framework based on the case context and your own experience (if applicable) with the industry.
Differences: The key difference between M&A and PE is what your client does with the asset after the acquisition. While there are PE funds that have a portfolio approach and could have in mind to merge the asset withe one of their competitors, this is an exception rather than the rule. Typical post-acquisition strategies are include revenue growth or cost reduction from within (new sales approach, new product line, cutting administrative slack, etc.). The key question is: "What can you do with this company to make it more valuable?"
In an M&A setup, this is just the oppositve. Most corporate buyers buy the target with a very specific strategic vision: revenue or cost synergies with the existing business, complimenting customer segments, strategic market entries, etc. Key question here is: "Why is this company worth more to your client than to anybody else?"
In any of these cases, your framework should address the post acquisition (or merger) strategy, and it should identify the key issues upfront based on the context you get from the interviewer.