Basic, lesson 1 of 3
The shape of the case
A corp dev case is one question, should we do this deal, answered in four parts. The structure is simple; what interviewers watch is whether you reach a decision.
8 min, 3 checks
1Four questions in order
- Fit: does the target move the company's strategy forward, and is buying better than building or partnering?
- Value: what is it worth on its own, and what are synergies worth net of cost?
- Price and financing: what will it cost, can we afford it, and what does it do to EPS and leverage?
- Risk and integration: what could go wrong, and what would we have to get right after closing?
Say the four parts in your first minute, then ask for data in that order. The interviewer may jump around; keep a running note of what each part has told you so the answer at the end is grounded.
Check 1
The interviewer opens with: our company is considering buying a regional competitor. What is the best first move?
2How time goes
| Part | Minutes | What a strong candidate does |
|---|---|---|
| Structure and clarifying | 2 to 3 | States the four parts and asks what triggered the deal |
| Fit | 4 to 5 | Names the strategic gap and compares buy with build and partner |
| Value and price | 8 to 10 | Gets standalone value, nets synergies, sets a walk-away price |
| Risk and integration | 4 to 5 | Names the two or three risks that would change the answer |
| Recommendation | 2 | Yes, no, or yes at a price, with conditions |
Check 2
What is the weakest way to end a case?
Check 3
How is a corp dev case different from a consulting case?
Terms in this lesson: Synergies.
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