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BCG Hard M&A Valuation Synergies Analysis

Pet Paws

#Retail #E-commerce #Pet Products #Subscription Services
ProHub Comment

This is a comprehensive M&A valuation case requiring candidates to build a detailed DCF model incorporating three revenue streams, calculate fixed and variable costs, and quantify synergies. The case tests both quantitative modeling skills (revenue build-up, EBIT calculations, valuation) and strategic thinking about market positioning and integration risks.

Estimated Time 15 minutes
Difficulty Hard
Source Duke
50 / 100
Your client is PawsPlus Retail, a national specialty retailer offering premium pet food, treats, supplements, toys, and grooming products through 430 stores and a fast-growing e-commerce business. The company is evaluating the acquisition of PetHub, a fast-growing direct-to-consumer subscription platform offering personalized pet nutrition boxes and tele-vet services.. PetHub is currently seeking a $2.8B valuation in a full acquisition offer from PawsPlus. PawsPlus has hired your team to determine should we acquire PetHub at its asking price?

Clarifying Information

  1. Goal: Client has been looking to make a successful acquisition for some time and wants to make sure this is the right move.
  2. Model: PetHub operates a high-growth DTC subscription model delivering personalized pet nutrition boxes, complemented by recurring tele-vet services and shoppable add-on products.
  3. Geography: Both the client and target company operate in US.