Medium
Merger & Acquisition
Quick Package Co
Practice this intermediate merger & acquisition case interview question in the Transportation sector. Includes detailed problem prompt, clarifying questions, structured framework, and expert recommendation. Part of ProHub's 835+ consulting case library.
ProHub Comment
This case requires a structured cost-benefit analysis comparing two vehicle types over their lifecycle. The key insight is the breakeven analysis: with a $10,000 annual cost advantage, electric vans initially lose because their 3-year useful life is shorter than the payback period. However, a technology breakthrough extending vehicle life to 4 years flips the recommendation, demonstrating how changing one parameter can alter the investment decision.
Estimated Time
26 minutes
Difficulty
Medium
Source
Cornell
10
/ 100
Our client is a major delivery company in the United States. Quick Package Co. (QPC) is a national player with reach across the nation. QPC completes routine residential and commercial package delivery (like FedEx and UPS). Competing is a costly business these days and the company is facing a major decision about their vehicle fleet – should the company invest in a fleet of internal combustion engine (ICE “gas”) trucks or electric (EV) vans? Our client is looking for your guidance to help answer this question.
Clarifying Information
- Urban and local deliveries [not long-haul trucking]
- QPC recently invested in EV Trucks (for interstate logistics)
- Assume the physical size and capacity of the two kinds of vans are equivalent