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Easy Merger & Acquisition

Nautical Nonsense

#Consumer Goods #Media & Entertainment

Practice this beginner-friendly merger & acquisition case interview question in the Consumer Goods 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 the candidate's ability to recognize that aggressive short-term growth targets require inorganic solutions (M&A) rather than organic growth strategies. The exhibits guide candidates through constraint-based analysis (budget limits, revenue targets) and synergy quantification, requiring both quantitative rigor and strategic judgment about which initiatives generate the most near-term revenue impact.

Estimated Time 17 minutes
Difficulty Easy
Source Duke
19 / 100
Mr. Krabs, the owner of the restaurant “The Krunchy Krab”, has a predicament. The Krunchy Krab has reigned as king of the Martini Bottom casual restaurant market for quite some time, however, their primary competitor, “The Clam Bucket”, which is run by Mr. Krabs’ arch nemesis, Plankton, has been rapidly stealing market share from the Krunchy Krab for the last few years. Krabs has hired your consulting firm to figure out how to solidify its place as the dominant player in the market. Last year, the Krunchy Krab brought in $500K in revenue. What should Mr. Krabs do to improve sales this year?

Clarifying Information

Client/Company:

  • The Krunchy Krab currently sells only 1 product, the “Krunchy Patty”, which is a 100% lean beef burger
  • Last year, the Clam Bucket brought in $400K in revenue

Market:

  • The Krunchy Krab competes in the casual restaurant market in Martini Bottom which is a $1.5M market located just outside the U.S.
  • The casual restaurant market is fairly concentrated in Martini Bottom – in addition to the Clam Bucket and the Krunchy Krab, there are a few other smaller competitors
  • We don’t have any information as to why the Clam Bucket has been stealing market share at the moment

Goal:

  • Mr. Krabs is eager for retirement, so he wants quick results. The primary objective is for the Krunchy Krab to increase annual sales to $750K THIS year (a 50% share of last year’s total market size).
Mock Interview
Interviewer

Mr. Krabs, the owner of the restaurant "The Krunchy Krab", has a predicament. The Krunchy Krab has reigned as king of the Martini Bottom casual restaurant market for quite some time, however, their primary competitor, "The Clam Bucket", which is run by Mr. Krabs' arch nemesis, Plankton, has been rapidly stealing market share from the Krunchy Krab for the last few years. Krabs has hired your consulting firm to figure out how to solidify its place as the dominant player in the market. Last year, the Krunchy Krab brought in $500K in revenue. What should Mr. Krabs do to improve sales this year?

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

A restaurant owner seeks to grow market share from $500K to $750K revenue in one year by acquiring competitors. Candidates must evaluate acquisition targets within a $400K budget, identify the best combination (Flying Dutchman Fries + Patrick’s Pizza for $225K revenue), and develop a synergy initiative (Bubble Ads promotion) to capture the final $25K needed.

Key Insights:

  1. Short-term growth targets should drive strategy selection—inorganic growth (acquisitions) beats organic in this context
  2. Constraint-based problem solving: candidates must work within budget limits while maximizing revenue impact
  3. Synergy realization is critical—acquiring complementary businesses (fries + pizza with burger) and cross-selling through integrated marketing captures value
  4. Quantitative precision matters: candidates must calculate expected revenue capture rates (4% × $650K = $26K) to identify the highest-impact initiative

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