{"id":814,"date":"2013-03-14T14:13:38","date_gmt":"2013-03-14T14:13:38","guid":{"rendered":"https:\/\/www.consultingfact.com\/?p=814"},"modified":"2018-10-24T14:24:28","modified_gmt":"2018-10-24T14:24:28","slug":"consulting-case-interview-prep-private-equity-acquisition","status":"publish","type":"post","link":"https:\/\/www.consultingfact.com\/blog\/consulting-case-interview-prep-private-equity-acquisition\/","title":{"rendered":"Consulting Case Interview Prep: Private Equity Acquisition"},"content":{"rendered":"

\"Interview\"<\/p>\n

When you decide to pursue a career in management consulting, you accept the fact that you will need to ace a few case interview rounds before you can sign the employment contract. A business situation will be presented to you; you are expected to analyze the scenario and generate sensible recommendations within a limited period of time.<\/p>\n

This type of interview aims to assess how you apply logic in resolving an ambiguous and stressful situation. The prospective firm wants to know if you are analytic, organized, and sharp enough to handle the responsibilities and duties of a consultant. Your communication skills will also be evaluated as this ability is crucial in conveying important messages to both client employees and top management.<\/p>\n

Importance of Practice<\/h2>\n

The key to mastering this challenge is practice. Familiarizing yourself with various business cases and frameworks equips you with an in-depth understanding about the nature, requirements, and process of the interview. Take full advantage of the free resources on the websites of top consulting firms such as McKinsey, Bain, BCG, and other reputable firms.<\/p>\n

As an additional preparatory material, below is a private equity acquisition case taken from Consulting Job Academy<\/a><\/strong>, one of the best online courses for management consulting applicants. This excellent example details the logical process of arriving at the final conclusion, thereby giving you concrete guidelines on how to manage your actual case interview.<\/p>\n

Scenario<\/h2>\n

Greystone Partners, a North American-based private equity firm, is considering the acquisition of Deluxe Cane, the leading manufacturer of walking canes for the elderly in the US. Greystone Partners has engaged your team to help determine whether to proceed with the investment.<\/p>\n

Here is the data we have:<\/p>\n

\"Private-Equity-Image-1\"<\/p>\n

Case Questions<\/h2>\n

Below are the questions you should answer to resolve the case:<\/p>\n

    \n
  1. Estimate the market size for walking canes in the US. Is the market attractive?<\/li>\n
  2. How is the financial performance of Deluxe Cane?<\/li>\n
  3. You have just run additional competitive analysis and found that Deluxe Cane\u2019s two largest competitors operate as part of larger organizations that sell related mobility devices. Using all the information you have collected thus far, do you believe Deluxe Cane is competitively positioned?<\/li>\n
  4. What other issues would you want to analyze before making an investment decision?<\/li>\n
  5. Should Greystone Partners invest in DC?<\/li>\n<\/ol>\n

    Case Solutions<\/h2>\n

    Below are the detailed answers to the aforementioned questions:<\/p>\n

    Question 1<\/h3>\n
    Estimate the market size for walking canes in the US? Is the market attractive?<\/em><\/div>\n

    Firstly, you need to establish the structure you will use for estimating market size:<\/p>\n

    \"Private-Equity-Image-2\"<\/p>\n

    Secondly, you will make the estimations. You can either make your own assumptions or ask for inputs.<\/p>\n