Eurotech
Practice this intermediate merger & acquisition case interview question in the Technology 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 synergy case requiring candidates to analyze a cross-border merger in a declining hardware industry. The case tests structured problem-solving around cost and revenue synergies, with emphasis on identifying that Poland's superior profitability profile (higher R&D investment, lower labor costs) should drive consolidation strategy. The quantitative analysis is moderate in complexity but requires careful ratio calculations.
Estimated Time
26 minutes
Difficulty
Medium
Source
IESE
10
/ 100
Two technologic firms within the audio-visual tech industry have decided to join forces. Their market: manufacturing of Hardware components for audio-visual transmission has been declining at a 14% rate and this has affected their profitability jeopardizing their future operations. Both of their CEOs have agreed on contracting a consulting firm to help them navigate the process. Your job is to size the potential synergies that the operation may yield for the NewCo in the future
Clarifying Information
- If the interviewee asks to know more about the audio-visual industry, show exhibit I
- The companies work on a per project basis, mainly for hospitality segment (75% of their revenue)
- Their operations are limited to the manufacturing & assembly of the Hardware components, the installation is done by a third party
- The companies are not based in the same country, one company is in France and the other in Poland
- They are both of similar size and have similar operations
- The French company owns two plants (one in Southern France and the other next to Paris) while the Polish part owns one bigger plant near Warsaw
- The objective is to improve their common profitability by a 10% of the aggregated revenues