Pet Paws
Practice this advanced merger & acquisition case interview question from BCG in the Retail sector. Includes detailed problem prompt, clarifying questions, structured framework, and expert recommendation. Part of ProHub's 835+ consulting case library.
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
36 minutes
Difficulty
Hard
Source
Duke
48
/ 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
- Goal: Client has been looking to make a successful acquisition for some time and wants to make sure this is the right move.
- 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.
- Geography: Both the client and target company operate in US.