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Bain Medium Merger & Acquisition

Dollar Pizza Parlor

#Private Equity #Consumer Goods

Practice this intermediate merger & acquisition case interview question from Bain in the Private Equity sector. Includes detailed problem prompt, clarifying questions, structured framework, and expert recommendation. Part of ProHub's 835+ consulting case library.

ProHub Comment

This case tests candidates on private equity fundamentals: valuation analysis (EBITDA multiples), synergy identification, and growth strategy development. The structured approach requires moving from financial analysis to strategic opportunities, emphasizing both quantitative rigor and creative value-creation thinking.

Estimated Time 27 minutes
Difficulty Medium
Source Duke
52 / 100

Our client, Fuqua Capital, is a private equity firm that is considering buying Dollar Pizza Parlor (DPP), a national pizza brand in the United States.

The company’s current ownership has engaged in discussions with Fuqua Capital to initiate the sales process, and Fuqua Capital would like us to conduct the due diligence process for them to better understand:

• Dollar Pizza Parlor’s price • If this investment should be made

Clarifying Information

  1. Fund structure: The asset will go into a newly initiated fund with no hold constraints
  2. Objective: Maximize value for exit within 5-years
  3. Model: The target company, Dollar Pizza Parlor, currently operates 55 slice shops, and distributes in major retail stores across the country.
  4. Geography: U.S. based
  5. Timeline: ASAP
Mock Interview
Interviewer

Our client, Fuqua Capital, is a private equity firm that is considering buying Dollar Pizza Parlor (DPP), a national pizza brand in the United States. The company's current ownership has engaged in discussions with Fuqua Capital to initiate the sales process, and Fuqua Capital would like us to conduct the due diligence process for them to better understand: • Dollar Pizza Parlor's price • If this investment should be made

You

Thanks. Before analyzing, I'd like to clarify a few key questions...

Interviewer

Good question. Let me provide some background information...

You

Based on this, I suggest analyzing from these dimensions...

AI Score
Structure Analysis Communication Business Sense Quantitative
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Practice this case with AI Mock Interview

A PE due diligence case where candidates must value Dollar Pizza Parlor using financial exhibits, identify cost synergies, and develop location expansion strategies to justify a ~$20M acquisition recommendation within a 5-year exit horizon.

Key Insights:

  1. Calculate 3-year average EBITDA from revenue and cost data to establish valuation baseline using provided 13x multiple
  2. Identify operational synergies (SG&A reduction ~$0.5M) to increase valuation from $20M to $26M
  3. Structure expansion strategy considering revenue potential (demographics, location proximity) and costs (rent, taxes, logistics) tailored to target customer profile (college students)