Bain Mergers and Acquisitions Case Interview: Coffee Shop Acquisition

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Жыл бұрын

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A Bain-style case interview. What more needs to be said?
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2:48 - Case prompt
3:11 - Recap by candidate
7:24 - Case framework
37:40 - Final recommendation
40:07 - Feedback by the interviewer
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Пікірлер: 16

@user-uc7vs4zi3w 29 күн бұрын

The interviewer gave great insights

@JJ-zy3zv Жыл бұрын

great case thanks

@superboy90345 8 ай бұрын

Would it not have made more sense to focus on the market first? Looking at historical performance by channel/price point or however the market is segmented, drivers, competitive landscape, consumers (drivers/KPCs etc) to see if it’s a good market to enter. Then focus the shop, cost of opportunity/feasibility and then if time allows possible other alternatives?

@sergiodias6043 6 ай бұрын

you have a good valid point. there is no "right or wrong" in this :)

@user-lj2wb9cz9j Жыл бұрын

Wonder how to proceed to calculate NPV in this case? my approach is (5y-after-tax profit/discount rate - upfront cost), sounds right? upfront cost would be the purchasing price of the coffee shop.

@tatyanagustap3382 Жыл бұрын

Each year's profit should be discounted by its own discount rate equal to WACC to the power of the year

@karansidana1711 Жыл бұрын

For NPV, you would discount the Free Cash Flow to the Firm (FCFF) for the projected period including the terminal value.

@orueom7720 Жыл бұрын

@@karansidana1711 terminal value will not be relevant here. Terminal value for a 5+year horizon.

@jollyholly2851 Жыл бұрын

This could still be a good investment. Simple: Avoid the tax. Start a shell corporation (possibly in the Cayman Islands) that'll be the parent company of the coffee shop, then buy the coffee shop under that company.

@Unknowledgeable1 Жыл бұрын

This loophole to avoid tax has long been patched up since 2009. Not going to work anymore haha

@Unknowledgeable1 Жыл бұрын

I like the sound of this strat though. Earnings. Falls under the expense reduction bucket. Tax is an expense. It is reduced.

@jollyholly2851 Жыл бұрын

@@Unknowledgeable1 Funny I commented on this when I was recruiting; now I'm an incoming summer associate at BCG ;)

@Unknowledgeable1 Жыл бұрын

@@jollyholly2851 kzfaq.infoZB2ZZubWxDs?feature=share

@JP-rc2bz Жыл бұрын

@@jollyholly2851 Let's gooooo!