M&A consulting case interview: social media acquisition (w/ Bain and Kearney consultants)

🎥 Here's a consulting case interview featuring a Bain Consultant & Keraney Consultant focusing on a mergers & acquisitions (M&A) case that centers on the possibility of acquiring a social media platform for $3B by a manufacturing CEO. The case delves into the strategic fit, financial viability, and operational aspects of the potential acquisition.

Watch Eishan Dhandhania (Bain Consultant, London Business School MBA) run Vigram Mohan (Kearney Consultant, ex-Accenture) through this M&A consulting case interview.

🎬 Video Sections:
00:00 About the case
00:57 Introductions
01:32 Case question
03:43 Structure
07:12 Charts & data
13:21 Brainstorm
17:48 Key risks
21:10 Synthesis
23:20 Conclusion

#consultinginterviews #Bain #mergersandacquisitions #consulting

[assassinator]

Doubts -
1. Why haven't we delved into the revenue projections for Bs? To bake into the multiple valuation? Isn't that pretty standard.

2. Wouldn't we need to know more about John's existing media company, before presenting ideas?

[jimmykhawand]

I don't understand why he estimated a valuation/user based on Company B. Isn't he supposed to then divide his total estimated valuation ($3.6B) by the number of users Birdshot has (150M)? This would then give $24/user, which is actually attractive?

[vipuljha]

Thank you so much for doing this interesting M&A case! Just wanted to understand how did Vigram arrive at the revenue multiple for Birdshot? It does make sense to compare it with Company B, considering the kinda comparable user-base, but why 4X?

[SuyashSomani-mw]

Not sure if validation step was appropriate (valuation/user* user), reason to that it misses out the fact that revenue/user is 3X of Birdshot compared company B.

[elvinimali]

I thought there was a lot missing here. John has a net worth of 10bn, but we didn't explore how he would actually make that money available or structure the deal, nor on what timelines he would expect the company to return an investment for him

[vitakalma]

If the valuation is 3, 6 billion and the asking price is 3, 0 billion, why is it not an interesting target? It seems to me the company is undervalued and therefore should be considered further

[ThePiston]

Would've loved to extract more about what John thinks by asking a lot more questions. It was mostly a pessimistic view from the candidate before in-depth evaluation.