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Medium Merger & Acquisition

Housing Authority Goes Green

#Non-profit #Government/Public Service

Practice this intermediate merger & acquisition case interview question in the Non-profit sector. Includes detailed problem prompt, clarifying questions, structured framework, and expert recommendation. Part of ProHub's 835+ consulting case library.

ProHub Comment

This case tests financial analysis (ROI and payback period calculations) alongside qualitative judgment about public sector priorities. The interviewer deliberately introduces non-financial considerations—resident sentiment, construction disruption, and social equity—to push candidates beyond simple financial optimization and toward holistic decision-making appropriate for government clients.

Estimated Time 26 minutes
Difficulty Medium
Source Columbia
10 / 100
You’re working with the local city government in a major urban area. Your client manages housing developments spread across 3 neighborhoods that are collectively home to 400,000 residents. All residents receive health care services at the local hospital, also funded and managed by your client. The client received a grant from a major foundation and is considering using that money to remodel some of the city’s housing developments to feature more green space. Your job is to help the client think through whether this is a good idea and, if so, which sites to focus on first.

Clarifying Information

  1. The client has 4M to invest. If they don’t use the money on green spaces, they can use it for other city maintenance/improvement projects.
  2. Other than remaining within the $4M constraint, the city wants to see a positive ROI in 6 years or less
  3. It’s safe to assume that if the government decides to move forward, they’ll be able to break ground immediately
Mock Interview
Interviewer

You're working with the local city government in a major urban area. Your client manages housing developments spread across 3 neighborhoods that are collectively home to 400,000 residents. All residents receive health care services at the local hospital, also funded and managed by your client. The client received a grant from a major foundation and is considering using that money to remodel some of the city's housing developments to feature more green space. Your job is to help the client think through whether this is a good idea and, if so, which sites to focus on first.

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...
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Practice this case with AI Mock Interview

A housing authority evaluates whether to invest a $4M grant in green space retrofits across three neighborhoods, requiring candidates to analyze costs, quantify health benefits (asthma hospitalization savings), calculate payback periods, and weigh resident concerns against financial returns.

Key Insights:

  1. Public sector cases require balancing financial ROI with social and political considerations; economic benefits are only one piece of the equation
  2. Payback period (5.5 years for Site C) meets the 6-year constraint, but Site A’s higher annual savings ($600K vs $200K) creates a defensible alternative recommendation
  3. Survey data reveals a tradeoff: Site A residents are most enthusiastic but most concerned about construction disruption; Site B residents are least interested but least disruption-sensitive; strong candidates identify this tension and propose mitigation strategies
  4. The $4M budget constraint and risk of creating disparities across neighborhoods raise opportunity cost questions—candidates should consider whether other investments might generate higher returns