How do you solve a merger and acquisition case?
The Five Steps to Solve Any M&A Case Interview
- Step One: Understand the reason for the acquisition.
- Step Two: Quantify the specific goal or target.
- Step Three: Create a M&A framework and work through the case.
- Step Four: Consider risks OR consider alternative acquisition targets.
How do I prepare for M&A interview?
Essential interview preparation in M&A (Analyst 2 – Associate 1)
- Background of team (find them on LinkedIn etc.)
- Specific deals they have worked on and the complexities of the deals.
- General background on the business.
- Understanding of who the main competitors are as a general and also on deals.
How do you pass a case interview?
Case interview tips
- Understand the issue; ask clarifying questions as needed.
- Identify the underlying assumptions.
- Summarize specific issues and findings.
- State your recommendations.
- Outline next steps and expected results/impacts.
How do you ask for a merger in an interview?
General mergers and acquisitions interview questions
- How did you learn about this company and the job opportunity?
- Why have you decided to apply for this role?
- Why are you leaving your current position?
- What made you interested in pursuing a career in finance?
- How would your former co-workers describe you?
What are revenue synergies?
Revenue synergies are based on the assumption that the combined companies can generate more cash flows than if their individual cash flows were added together. Hence, synergies in M&A must be pitched as being mutually beneficial, as opposed to being one-sided exchanges.
When companies take over another company?
In general, “acquisition” describes a transaction, wherein one firm absorbs another firm via a takeover. The term “merger” is used when the purchasing and target companies mutually combine to form a completely new entity.
What can I expect at an M&A interview?
Essential Interview Preparation in M&A In particular, be prepared to provide detail on your contribution to every part of the process, and the value that you added. Like any ‘fit’ style questions, think about aspects of the deal that challenged you, obstacles you had to overcome, and what you learned from the deals.
What are good questions to ask acquisitions?
Why buy this company and why buy it now?
- Is there a market/opportunity that makes this acquisition essential?
- Is this a compelling target?
- What is the size of the market and what market share does the acquisition target hold?
- Does it fit in with your current (growth) strategy?
- To what level can the business be grown?
Are case interviews hard?
Case interviews are among the hardest job interviews for business candidates. Passing rate is only 10% to 20%, with each candidate facing 4-6 case interviews for one consulting recruitment process.
How long is a case interview?
about 30 minutes
What are case interviews? McKinsey, BCG, Bain, and other strategy consulting firms use case interviews in their recruiting process. Case interviews are about 30 minutes long during which you will analyze and solve a business problem. These cases are typically inspired from actual consulting projects.
Why are you interested in mergers and acquisitions?
Companies engage in mergers and acquisitions for a variety of reasons: Revenue synergies. A target company may offer opportunities for an acquiring company to increase its revenue through access to new customers, an innovative product development team, or expanded geographic reach.
How do mergers cut costs?
Businesses merge to achieve cost savings, gain market share and become financially stronger. Merged companies achieve savings by spreading their fixed costs over larger production volumes, which reduces unit costs and increases margins, and by negotiating lower input prices with suppliers.