Many consulting, corporate strategy, and corporate development roles require the interviewee to go through an M&A case study. Depending on the firm and specific role this case could be very strategic and operational like doing a market entry/growth-type case or very technical (i.e. building financial models like DCF, accretion/dilution, LBO, etc.). But before we dive […]
Tag: mergers and acquisitions
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Breaking down the M&A Case Study
M&A case framework Now that you have a high-level understanding of why companies buy each other in the first place (refer to M&A deals – benefits and drawbacks), let’s discuss the framework you should use to analyze the transaction. Firms typically look at four areas when working on M&A cases. Let’s step through them one […]
Another framework you should know is the Mergers & Acquisitions framework (M&A framework). The reason that this framework is worth introducing is due to the increasing frequency of M&A cases confronting candidates in the case interview. Needless to say, M&A deals are notoriously complicated financial activities, which makes candidates panic when they are prompted with […]
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Obituary: Booz & Company
RIP Booz & Company PwC completed its acquisition of Booz & Co today. Regulators approved the deal, as we expected. They appear to have conveniently overlooked or ignored the large conflict of interest issues posed by a merger of this size between an accounting firm and a consultancy. We outlined these risks in an earlier […]
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Mergers & Acquisitions: Valuation
“Price is what you pay. Value is what you get.” ~ Warren Buffett LAST post, I highlighted the importance of strategy when considering the viability of a potential acquisition; however, before a final decision can be made, a consultant needs to estimate the value of the target company. Building on information provided in Management Consulting: […]
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Mergers & Acquisitions: Strategy
MERGERS have had a ubiquitous presence in the news recently as leaders in the airline, publishing, and telecommunications industries have taken steps to consolidate. Just this week, two of the largest advertising entities, Omnicom and Publicis, announced a $35.1 billion merger. In recent months, tech giants Google and Yahoo have acquired dozens of companies, most […]