Luxury Landscaping
Practice this intermediate merger & acquisition case interview question from IGS in the Manufacturing 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 structured market sizing case focused on evaluating a geographic expansion opportunity for a luxury landscaping services company. The candidate must calculate the addressable market (55-60K homes) and annual project volume (~2,500-3,000 projects worth ~$750MM) by layering assumptions about property values, single-family homes with yards, and service frequency. The case tests both quantitative rigor and qualitative thinking about market dynamics.
Estimated Time
26 minutes
Difficulty
Medium
Source
Tuck
12
/ 100
Our client, a private equity firm, is considering an investment in a luxury residential landscaping company that focuses on large-scale renovation projects for high-value homes ($2MM+). As part of the development of its growth plan following the acquisition, our client wants to study Los Angeles County to evaluate its appeal as a target for geographic expansion.
Clarifying Information
- Additional Service Background: The company does total landscape renovation projects of residential yards (e.g., installing pools, replacing/planting foliage, creating plant beds, building/replacing patios, etc.). Property sales can sometimes be a prompt for undertaking a project, otherwise it is a significant upgrade investment.
- Service Pricing / Frequency: Ask the candidate to explain their intuition about what they think price/frequency might be based on the nature of the services. Then, let them know frequency is every ~20 years and the price is typically ~10% of the value of the home.
- Demographic Data: Provide the relevant L.A. County data in the exhibit with if requested.
- Competitive Landscape: ~100-200 small players on average undertaking <25 projects per year.