M&A consulting case interview: buying a baseball team (w/ ex-BCG Consultant & Darden MBA)
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- čas přidán 8. 07. 2024
- Here's a consulting case interview featuring an ex-BCG Consultant & a Darden MBA candidate focusing on a mergers & acquisitions (M&A) due diligence case.
🎥 Your client, Alpha Capital, is a private equity firm that is considering buying the
Philadelphia Phillies. The current team owners approached Alpha about
purchasing the team for $1.1B. Alpha engaged your firm in the due diligence process.
Watch Matthew Calvert (Ex-BCG Consultant) run Daniela Fernandez (Incoming BCG Consultant & Darden) through this consulting mock case interview.
🎬 Video Sections:
00:00 Intro
00:03 About the case
00:50 Introduction
01:28 Case question
1:56 Clarifying questions
3:50 Structure
10:00 Math
17:20 Brainstorm
20:00 Synthesis
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➡️ Book a 1-on-1 coaching session with Matthew here: www.rocketblocks.me/contribut...
➡️ Book a 1-on-1 coaching session with Daniela here: www.rocketblocks.me/contribut...
#consultinginterviews #caseinterviewprep #BCG #consulting #mergersandacquisitions
I like how the conclusions never are conclusions
can someone explain how she came up with the 10 millions costs from the chart ?
the difference in marketing and sales cost between philly and league is 10 million (180 million for Philly and 170 million for league), using comp as bench mark there is potential room to lower cost down to league teams marketing and sales
Is it recommended to still walk through the math out loud even if the calculations were fairly easy as in this video?
Yes. Read out the name of the costs first so that your initial equation can be checked with the interviewer. However, I usually ask, "Can I finish the computation and tell you the answer?" This is usually okay and desirable.
how can u simply add the synergies to 10% and apply it to the total revenue !!! shouldn't each revenue stream be calculated separately taking into consideration the respective increase % due to the synergies .. i would still give the same recommendations as the candidate to go for the investment because the snergies increased the value above the investment, but the amount is definitely different than what she calculated
you are so right. I thought the same thing!
I agree. Revenue by synergy calculation is incorrect. those percentages should have been applied individually to each revenue stream and then all updated revenue streams should have been added up
@@dasfreutmich1 The label on the chart shows that the percentages represent potential to boost TOTAL revnue.
@@erere9724 Ohhh Did not notice that, that actually saves a lot of time of the calculation. Thanks for the clarification
did you by any chance understand how she calculated the 10 millions of costs when analysing that chart ?
Can someone further explain the discount rate?
Yeah the overall case was easy to follow except this
I think it's about calculating the current value of the company. I.e. they assume that the baseball team will also make 100 million in profit in the future. But 100 million in the future has a different value today, therefore the discount rate is applied to it. 100 million divided by 0.1 gives 1 billion. So the investment today is worth 1 billion.
Please correct me if I'm wrong lol
In the industry, we use the term "multiple" because, as you said, the term discount rate can be misleading. In this case, I would've asked "What is the multiple I can use? x10?". This basically means that the life expected of an asset is 10 years, adjusted to the time value of money or whatsoever. It is a powerful benchmark to easily derive a firm's value.
@@sofiadobbertin5214 Shouldnt Future Value be divided by (1+r) and not r if you are trying calculate the present value? The direct division by 10% was confusing to me.