Easy
Growth Strategy
ST Boat Sale
Practice this beginner-friendly growth strategy 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 teaches candidates to build a financial valuation model by working backwards from operational metrics (tonnage, sailing days, costs) to calculate annual profits, then apply a simple multiple to determine enterprise value. The critical insight is recognizing that the buyer may extract significantly more value by utilizing the boat's empty return journey—doubling potential profits—which justifies the $72M offer despite the NPV calculation showing $96M.
Estimated Time
16 minutes
Difficulty
Easy
Source
Columbia
10
/ 100
Our client owns a boat, and he wants to know if they should sell it or not
Clarifying Information
- What type of boat is this? Client owns a supertanker
- What does the boat do/what is it used for? Oil transportation. Sails empty to Russia, picks up crude oil, and ships it back to the Netherlands. The clients pay him for the transport
- Who is interested in buying this boat? Container ship company is interested in the boat
- What is the capacity? 50,000 tonnage, can transport anything
- What is the boat’s useful life? 13 years old, 25 useful life
- What are the specs? Tech specs same as stuff in the market