M&A cases are increasingly common in consulting interviews, especially at firms with strong corporate finance practices. They test your ability to evaluate whether an acquisition makes strategic and financial sense.
The M&A Framework
1. Strategic Rationale
Why is the client considering this acquisition?
- Market share expansion
- Geographic diversification
- Capability acquisition
- Vertical integration
2. Target Assessment
Is the target company a good fit?
- Financial health (revenue, profitability, growth)
- Cultural compatibility
- Operational synergies
3. Synergy Analysis
Quantify the value creation:
- Revenue synergies: Cross-selling, new markets
- Cost synergies: Shared overhead, procurement savings
- Timeline: When will synergies be realized?
4. Valuation and Deal Structure
- What is the target worth?
- How should the deal be financed?
- What are the integration risks?
Common Pitfalls
- Forgetting to consider integration challenges
- Overestimating synergies
- Ignoring cultural fit
- Not considering alternative options (organic growth, partnerships)