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Hard Merger & Acquisition

Green Co

#Retail and Leisure #Consumer Goods
ProHub Comment

This is a quantitative-heavy investment decision case that tests NPV calculations, energy consumption modeling, and strategic thinking around ESG goals. The case requires candidates to balance financial metrics (NPV) with non-financial sustainability objectives, making it ideal for assessing both analytical rigor and strategic judgment in a business context.

Estimated Time 36 minutes
Difficulty Hard
Source Chicago Booth
25 / 100

Our client, Green Co, is a $10B global manufacturer and retailer of high-end outdoor apparel, with several well-known brands. The company has big growth aspirations. Through organic and inorganic growth, Green Co is hoping to grow from $10B in revenue in FY21 to $15B by FY25.

At the same time, the CEO has recognized their customers’ and investors’ interest in being an environmentally sustainable company and has asked their Director of Sustainability to develop goals for absolute reduction in carbon emissions despite the growth they have planned (as compared to a “Business As Usual” (BAU) scenario). The CEO expects this to support the company’s overall sustainability vision, help ensure protection of their brands’ value, and bolster the company’s market capitalization.

Clarifying Information

  1. You may remind the interviewee that they have some FY25 data.
  2. A candidate may wish to assume some increase in energy prices, which is perfectly acceptable. Allow them to assume no price change.
  3. Discount rate is 10% (also on the data sheet).
  4. Investment and payback both happen in FY21.
Mock Interview
Interviewer

Our client, Green Co, is a $10B global manufacturer and retailer of high-end outdoor apparel, with several well-known brands. The company has big growth aspirations. Through organic and inorganic growth, Green Co is hoping to grow from $10B in revenue in FY21 to $15B by FY25. At the same time, the CEO has recognized their customers' and investors' interest in being an environmentally sustainable company and has asked their Director of Sustainability to develop goals for absolute reduction in carbon emissions despite the growth they have planned (as compared to a "Business As Usual" (BAU) scenario). The CEO expects this to support the company's overall sustainability vision, help ensure protection of their brands' value, and bolster the company's market capitalization.

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
Practicing...
Score coming soon
Practice this case with AI Mock Interview

Green Co seeks to achieve carbon emission reductions while growing revenue from $10B to $15B by FY25. Candidates must analyze two energy efficiency project groupings using NPV analysis, determine energy spend and emissions under different scenarios, and recommend an implementation strategy that balances financial returns with ESG goals.

Key Insights:

  1. NPV calculation with multiple scenarios requires understanding the relationship between energy consumption and carbon emissions
  2. Building a methodical framework to compare alternatives under different carbon reduction targets (0%, 5%) is critical
  3. Strategic recommendations must balance quantitative financial metrics (NPV) with qualitative factors (stakeholder expectations, implementation capability, competitive benchmarking)
  4. Implementation considerations beyond pure financial analysis are essential, including capital availability, organizational readiness, and measurement verification