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M&A Interview Case: Should SteelTech Buy BoltWerk?
New

< 100
Times solved
5.0
< 100 Ratings
Intermediate
Difficulty

Case Prompt

A mid-sized European industrials company, SteelTech AG, is considering acquiring a smaller competitor, BoltWerk GmbH, to expand its product portfolio and gain market share. You are part of the M&A advisory team. The CEO asks you to do a quick assessment of whether the acquisition makes strategic and financial sense.

What initial information would you want to gather to assess this deal?

What are the potential strategic benefits and risks of the acquisition for SteelTech?

How would you estimate a reasonable valuation range for BoltWerk?

Using the market multiples method, how would you estimate a standalone valuation range for BoltWerk?

How would you incorporate potential synergies into your valuation of BoltWerk?

If SteelTech were to pay €550 million for BoltWerk, would that be a fair price?

How could SteelTech finance the acquisition of BoltWerk, and what factors should influence its choice of funding mix?

What impact would this acquisition have on SteelTech’s balance sheet and financial flexibility?

Based on everything we’ve discussed, would you recommend that SteelTech proceed with the acquisition of BoltWerk?

< 100
Times solved
Intermediate
Difficulty
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