The case is divided into three main questions:
Equinite is a manufacturer of horse MRI machines in the UK. MRI (Magnetic Resonance Imaging) machines are used to produce detailed imaging of tissues using strong magnetic waves. They own the intellectual property for a horse MRI machine which is a unique design, allowing the horse to remain standing while receiving the scan. The machine is the only one of its kind in the UK. Equinite provides MRI-qualified veterinary clinics with a horse MRI machine for use in the diagnosis of lameness without the additional complexities of general anaesthesia Their main source of revenue is fee per scan, but they also offer maintenance services. A private equity firm is interested in acquiring the business and has engaged you to assess the size of the market in which Equinite operates.
How would you estimate the total annual spend (i £) on horse scans, and associated MRI machine maintenance in the UK? Please lay out your methodology and then walk the interviewer through your methodology. Do not carry out any calculations yet.
Please calculate the total annual spend (in £) on horse scan fees. Do not calculate the associated spend on MRI machine maintenance
If you had to check one assumption, what would it be?