Top Takeaways

Question 1

Looking for substitutions in the market is a good idea in what time of market?

Answer 1

Declining market

Question 2

The lowest hanging fruit to increasing revenues?

Answer 2

Raising prices

Question 3

Alternative way to brainstorm costs vs. FC/VC?

Answer 3

Upfront, Recurring, Opportunity

Question 4

When a competitor is doing better than average, what can you do?

Answer 4

Understand why and copy the strategy if you can

Question 5

If a player drops out of a market from year to year, what could have happened?

Answer 5

Bankrupt or acquired, look for other clues (i.e. another competitor absorbing their revenue)

Question 6

Good question for PE Acquisition on PE Firm bucket?

Answer 6

Can they run the business and optimize it? Do they have the expertise? Why do they want the business in their portfolio?

Question 7

The good thing about bankruptcy?

Answer 7

It is a buying opportunity for those that could use the asset

Question 8

Often a missing piece of the incremental profit/rev equation

Answer 8

Cannibalization!

Question 9

Good questions to ask about outsourcing partner?

Answer 9

Quality? Lead times? MOQ?

Question 10

Outsourcing might save on costs, but it could hurt you where?

Answer 10

Customer perception of brand

Question 11

You might see increase in labor/OT costs and lower profit during whatt?

Answer 11

Short term demand spikes

Question 12

What is the risk of large investment deals with a 3rd party?

Answer 12

large investment generally means long contract, partner/vendor could be bad and now you’re married

Question 13

What are 5 things to think about before entering foreign market?

Answer 13

1. customer habits 2. local competition 3. regulation 4. country’s economic and geo political situation 5. logistics

Question 14

variable costs for subscription models

Answer 14

CAC

Question 15

top KPIs for ecomm/subscription models

Answer 15

CAC, LTV:CAC, ARPU, churn

Question 16

cases involving leases, what is a great step/strategy

Answer 16

Can you negotiate by signing longer ones? Multi-year agreements?

Question 17

A red flag when looking at market size of market to enter

Answer 17

How does it compare to company’s size? I.e. if the entire market is smaller than the company, does it make sense?

Question 18

What’s the risk with using expected value?

Answer 18

It’s just math—it doesn’t take into account the scenarios that could play out, which might provide better data to make recommendations

Question 19

Great clarifying question about CapEx investments?

Answer 19

Is it all up front or phased in yearly (important for breakeven analysis)

Question 20

When looking at investment targets in PE/M&A cases, what is something to keep in mind?

Answer 20

Better alternative use of cash

Question 21

7 reasons to make acquisition

Answer 21

Company: 1. increase MS / market access 2. increase brand perception 3. target is a threat 4. talent 5. IP/Licenses 6. Rev/Cost synergies

PE: 1. diversify portfolio

Question 22

Target DD questions

Answer 22

What shape is it in? how do they compare to market avg? Why on the market? how secure are suppliers/cust/talent? legal/reg? fair value?

Question 23

Strategic Fit bucket for M&A

Answer 23

brand, customer base n/p, synergies, ease of integration