Hard
Merger & Acquisition
Jimmy's Dilemma
#Recruiting
Practice this advanced merger & acquisition case interview question from Deloitte in the Recruiting 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 sophisticated valuation case requiring DCF analysis and NPV calculations to compare two employment offers. The key insight is recognizing that the initial 3-year compensation analysis favors Firm A by $10k, but the exit opportunities available after leaving Firm B create significantly higher long-term value, making Firm B the optimal choice. The case tests both quantitative rigor and the ability to identify non-obvious value drivers.
Estimated Time
36 minutes
Difficulty
Hard
Source
NYU
25
/ 100
It is early October, and Jimmy Smith, an MBA2 at NYU Stern, has a decision to make. After a summer interning at Firm A, Jimmy received an offer to return full-time next year. However, Jimmy also decided to re-recruit and received a competing offer from Firm B. Jimmy now needs to decide which offer he should accept, and has looked to you, his best friend, for help.
Clarifying Information
- Jimmy only cares about money, and is seeking to maximize financial value
- Jimmy is not considering any other opportunities
- If asked: Jimmy’s intention is to work at either firm for 3 years
- Firms A and B are competitors in the same industry
- Firm A is considered second tier, but increasingly competes with top-tier firms for talent
- Firm B is the more prestigious and is considered top-tier in its industry