There are a few other important clarifying questions to ask, including: 1) What constitutes success? Do they have an ideal timeline or numerical figure for a return? This is different than your first. 2) What are, if any, Alpha's previous investment. If relevant, who makes up the management team. This is important to understand potential cost synergies.
I'd love to see an example video of you taking yourself through a case study like you would do in an interview, without as much explanation on why you're doing specific parts. Maybe for this case or another case where you break the video down into 2 parts, a real complete walk thru followed by an in-depth explanation. This was a great resource and I'd like to be able to compare how much to say to my interviewer in contrast to a in-depth walk thru tutorial. Great video Matt, thank you!!
I'm currently studying strategy, investments (Angel, VC, & PE) and M&A, and your videos are insightful. I'm learning a lot. Thanks Matt! More M&A stuff (cases, process, structure, deals, analysis, strategy) please. More power!
13:57 Learning fractions by heart with denominators at least up to 10 can generally help you in a lot of similar calculations. In this case, recalling that 1/9 = 0.1111..., then any single repeating decimal, such as 55.56%, is that decimal times 1/9, in this case 5/9. You'll notice that your number of standard seats is neatly set up to be easily divisible by 9 (most probably intentionally), so you can quickly get to 5/9*45k=25k seats.
Hi Matt, I really love your video style, pacing, choice of words, and content-almost everything! I'm eagerly looking forward to more medium-to-long videos. I understand there's a trade-off since longer videos might mean lower completion rates and output, but I think those moments are the most enjoyable. Don't get me wrong; I'm still excited for more of your lifestyle videos! Looking forward to more shares. By the way, we're the same age and both looking for opportunities and growth in New York. You're an inspiration to me. Blake
I think a lot of this analysis can be pretty intuitive. What's impressive to me is the crystal clear articulation. Any english speaker can watch this video and immediately feel as if they have an MBA.
13:51 Great video! Every part was very insightful. I was wondering why you don’t use the fill rate of 55.6% to make a case for the potential upside of dynamic pricing. Is this problem already addressed in your recommendation through cost levers?
The expected returns for a PE is definitely not 10% Also you need to do entry / exit valuation to get an IRR 100% returns over 3 years vs 5 years are worlds apart
At hte potential boost to total revenue, wouldnt it make sense to add the percentages to their respective sector like 4% to tickets etc because the number would get smaller. With just multiplying the entire 300M by 1.1 you get an overestimation right?
The chart specifies that the boost would be to total revenue, so in this case we can assume the increase as a whole. Of course this is simplified for the case, but in my opinion that would be a great question to ask to the interviewer for extra points
Is it not important to answer the question on if they should invest, the answer just seems like it's "we need more information on how to the implementation will work". Is this a good enough answer? i'm very curious.
As far as I know no PE firm worth its salt would bring in consultants to ask a questions of should they make an investment. What are you paying your analysts, associates, vp, and MD's for? I also don't see how this is considered a hard case, but that's coming from someone with over 20 years of investment management and valuation experience.
Hi Matt, I'm loving your content-it's giving me a great picture of what management consulting is all about. As someone exploring a career in this field, I wanted to ask about the software skills that are particularly valuable. Are there any specific SAP modules or tools that consultants should be proficient in? I'd appreciate any insights you can share!
Thank you for the video, I learned a ton! I am scheduled for a Bain digital interview in the coming weeks- any advice on what will be on there/ how to best prepare? Online does not seem to have too much info
Wait wouldn’t the revenue synergies be 8.2M not 30M? 80M x 0.04 = 3.2M 120M x 0.03 = 3.6M 50M x 0.02 = 1M 40M x 0.01 = 0.4M Aggregating the % growth for each category to 10% and then multiplying it by the total revenue seems wrong here - that would mean we were growing each category of revenue by 10%…
21:38 it's convenient these synergies are just given to you. Finding these potential boosts to total revenue is the actually interesting, difficult, and valuable part. Too bad that's not what the case is. Everything else seems pretty easy
Hi Matt, thanks for the great video! I was wondering…. Do you believe the ROI would be a good aspect to analyze as well.? As Alpha capital might get better returns by investing in a different project. Taking into consideration the 1.2bi valuation the return on the investment would be roughly 9%.
not hating, just curious from an outsider perspective what makes this difficult? or perhaps what standout skills are they looking for? it seems like it’s mainly memory, math, and common sense based on what the interviewer feeds you?
Im sorry but is this really how the case studies go in real life? It seems way too easy, almost all what is talked about in the video are very simple concepts that are already taught. Im guessing they are 2x harder in real life. Not sure
Hi Matt, thanks a lot for the video. How would your approach the case if the funding structure of the deal would have been important in this case? Would you just subtract the capital costs in the cash flow calculation?
You did a good job presenting this and you are explaining this well. But it's hilarious what business people (analysis, consultants etc.) think is "hard difficulty". This is trivially understood and mostly common sense. The math is just simple multiplication steps. If this is hard difficulty, then please never consider diving into Computer Science, just as an example. Because that would probably put you into existential crisis. (I don't refer to Matt Huang, talking in general).
While I agree that the material itself is not inherently difficult, you have to reconsider context: 1. This is an interview environment. You are stressed, you have to think on your feet. 2. You are directly judged by your creativity, similar but not exactly the same to a CS interview. For example, CS interviews are generally given a problem (similar to business problems in cases) and are expected to be creative and solve. You are judged on performance and efficiency. This is no different fundamentally, except that you are DIRECTLY compared to every other interviewee also doing this case. There is a limited number of ways to approach a case, so much more of the success is dependent on articuateness, etc. 3. CS is much more formulaic. You can run through and practice 100 leetcode problems and likely get some exact variation in interviews. While cases tend of be somewhat formulaic, you can run through 100 cases if you'd like and get bombarded with an idea/case/situation that you have no experience in or where the interviewer expects something different 4. You are graded on your articulateness, creativity, etc., much more subjectively than a CS interview There is so much more I could add here, but there is a reason Consulting jobs have a lower acceptance rate than even the most competitive CS jobs (less the Jane Streets, etc.) I know this because I am a CS minor and an econ major, and I have final round interviewed for Jane Street, HRT, OC&C, and BCG/Bain.
At the synergies part, wouldn't increasing revenue by $30M and cutting costs by $10M lead to a $40M increase, rather than $20M?
Wondering the same!
Same
I think so
Hey everybody, good catch! Should be $40M increase from synergies, leading to a $1.4bn total valuation after discounting
@@matthuang21 Thank you so much! you're the best
been here since 3k, so glad your channel is taking off! I have learned so much.
Thanks for being an OG subscriber :)
There are a few other important clarifying questions to ask, including:
1) What constitutes success? Do they have an ideal timeline or numerical figure for a return? This is different than your first.
2) What are, if any, Alpha's previous investment. If relevant, who makes up the management team. This is important to understand potential cost synergies.
Great point, these are very valid and important questions to ask. Thanks for sharing!
I'd love to see an example video of you taking yourself through a case study like you would do in an interview, without as much explanation on why you're doing specific parts. Maybe for this case or another case where you break the video down into 2 parts, a real complete walk thru followed by an in-depth explanation. This was a great resource and I'd like to be able to compare how much to say to my interviewer in contrast to a in-depth walk thru tutorial. Great video Matt, thank you!!
prepping for my schools consulting club, your channel has been a godsend. Thank you for all that you do on here!
Hold up babe, am finishing up watching a guy with whiteboard!
😆
I am from Germany and I currently try to get in BCG or McKinsey. I really appriciate your Video! Great work! As always 😉.
Thanks Markus!
A true masterclass! Thank's, Matt.
Of course, thanks Enzo!
Love your insightful analysis and suggestions, keep it up, Matt! 👏
I'm currently studying strategy, investments (Angel, VC, & PE) and M&A, and your videos are insightful. I'm learning a lot. Thanks Matt!
More M&A stuff (cases, process, structure, deals, analysis, strategy) please.
More power!
this was great! As a layperson, I really enjoyed the whole process and explanation - thanks a lot!
Glad you enjoyed it!
Matt I’m so glad to see you get the traction on UA-cam that you deserve!
Keep it coming, I’m rooting for you and watching along from sideline🎉
Emil! I really appreciate you. Thanks for being an OG subscriber 💪🏻
13:57 Learning fractions by heart with denominators at least up to 10 can generally help you in a lot of similar calculations. In this case, recalling that 1/9 = 0.1111..., then any single repeating decimal, such as 55.56%, is that decimal times 1/9, in this case 5/9. You'll notice that your number of standard seats is neatly set up to be easily divisible by 9 (most probably intentionally), so you can quickly get to 5/9*45k=25k seats.
the #1 protip about consulting is, you don't need to be right; you just need to sound right.
Hi Matt, I really love your video style, pacing, choice of words, and content-almost everything! I'm eagerly looking forward to more medium-to-long videos. I understand there's a trade-off since longer videos might mean lower completion rates and output, but I think those moments are the most enjoyable. Don't get me wrong; I'm still excited for more of your lifestyle videos! Looking forward to more shares. By the way, we're the same age and both looking for opportunities and growth in New York. You're an inspiration to me.
Blake
Really appreciate this Matt, God Bless
likewise!
I think a lot of this analysis can be pretty intuitive. What's impressive to me is the crystal clear articulation. Any english speaker can watch this video and immediately feel as if they have an MBA.
Much appreciated!
Thank you for sharing Matt, your video really helps me a lot in my analysis and thinking.
Glad to hear it!
Very good video, Matt. Tks for sharing. Please, if possible, do more cases like this... My regards from Brazil.
Hey Lucas! So great to hear that - more of these to come, stay tuned
Thanks man . Continue doing this we want more of this knowledge 😅
Thank you Matt.
Great video.
following you from Saudi Arabia
Matt simplifies with simplicity❤
Brilliant work
very well explained!
Great case study! 📚💯
thanks Sheraar!
Debt/equity ratio is quite important, however in this model high debt may be less of a negative factor.
omg. best video ever. thanks so so much.
Hey Chika! I'm so glad to hear that you found it helpful!
Good work. However, I would also mention wider considerations/risks such as geographic location, vendor contracts, reliances, stadium repairs, etc.
Great points
13:51 Great video! Every part was very insightful. I was wondering why you don’t use the fill rate of 55.6% to make a case for the potential upside of dynamic pricing. Is this problem already addressed in your recommendation through cost levers?
More of these videos please
The expected returns for a PE is definitely not 10%
Also you need to do entry / exit valuation to get an IRR
100% returns over 3 years vs 5 years are worlds apart
First comment !!! Love all your videos Matt ✨
You’re quick!!
At hte potential boost to total revenue, wouldnt it make sense to add the percentages to their respective sector like 4% to tickets etc because the number would get smaller. With just multiplying the entire 300M by 1.1 you get an overestimation right?
The chart specifies that the boost would be to total revenue, so in this case we can assume the increase as a whole. Of course this is simplified for the case, but in my opinion that would be a great question to ask to the interviewer for extra points
great video (again)
Thanks again!
Is it not important to answer the question on if they should invest, the answer just seems like it's "we need more information on how to the implementation will work". Is this a good enough answer? i'm very curious.
Heyy Matt! Great vid always! Could you do a vid of the resources you used for your prep
Sure thing!
Why'd you use the perpetuity basis for the formula?
As far as I know no PE firm worth its salt would bring in consultants to ask a questions of should they make an investment. What are you paying your analysts, associates, vp, and MD's for? I also don't see how this is considered a hard case, but that's coming from someone with over 20 years of investment management and valuation experience.
Hi Matt, I'm loving your content-it's giving me a great picture of what management consulting is all about. As someone exploring a career in this field, I wanted to ask about the software skills that are particularly valuable. Are there any specific SAP modules or tools that consultants should be proficient in? I'd appreciate any insights you can share!
Thank you for the video, I learned a ton! I am scheduled for a Bain digital interview in the coming weeks- any advice on what will be on there/ how to best prepare? Online does not seem to have too much info
Wait wouldn’t the revenue synergies be 8.2M not 30M?
80M x 0.04 = 3.2M
120M x 0.03 = 3.6M
50M x 0.02 = 1M
40M x 0.01 = 0.4M
Aggregating the % growth for each category to 10% and then multiplying it by the total revenue seems wrong here - that would mean we were growing each category of revenue by 10%…
never seen a guy so happy solving a busniess case
21:38 it's convenient these synergies are just given to you. Finding these potential boosts to total revenue is the actually interesting, difficult, and valuable part.
Too bad that's not what the case is. Everything else seems pretty easy
What does “MECE” mean in your video note at 10:43? Thanks
MECE means mutually exclusive, collectively exhaustive. Hope this helps!
20:23 I think you meant 100mn instaed of 100tsd $
This thing can be done easily by gpt4
Hi Matt, thanks for the great video!
I was wondering…. Do you believe the ROI would be a good aspect to analyze as well.? As Alpha capital might get better returns by investing in a different project. Taking into consideration the 1.2bi valuation the return on the investment would be roughly 9%.
Definitely valid.
Would legal risks qualify as financial or non-financial? Thinking about potential litigation, think Bayer Monsanto for example
not hating, just curious from an outsider perspective what makes this difficult? or perhaps what standout skills are they looking for?
it seems like it’s mainly memory, math, and common sense based on what the interviewer feeds you?
Should find a pair to try
is it just me or is it actually easy?
ye don’t know why a business would ever get a consultant
Yes I also find it easy
Holy shit, you're so articulate what the fuck - I'm very inspired
Im sorry but is this really how the case studies go in real life? It seems way too easy, almost all what is talked about in the video are very simple concepts that are already taught. Im guessing they are 2x harder in real life. Not sure
Masterclass
You know it boss
Hi Matt, thanks a lot for the video. How would your approach the case if the funding structure of the deal would have been important in this case? Would you just subtract the capital costs in the cash flow calculation?
You did a good job presenting this and you are explaining this well. But it's hilarious what business people (analysis, consultants etc.) think is "hard difficulty". This is trivially understood and mostly common sense. The math is just simple multiplication steps. If this is hard difficulty, then please never consider diving into Computer Science, just as an example. Because that would probably put you into existential crisis. (I don't refer to Matt Huang, talking in general).
While I agree that the material itself is not inherently difficult, you have to reconsider context:
1. This is an interview environment. You are stressed, you have to think on your feet.
2. You are directly judged by your creativity, similar but not exactly the same to a CS interview. For example, CS interviews are generally given a problem (similar to business problems in cases) and are expected to be creative and solve. You are judged on performance and efficiency. This is no different fundamentally, except that you are DIRECTLY compared to every other interviewee also doing this case. There is a limited number of ways to approach a case, so much more of the success is dependent on articuateness, etc.
3. CS is much more formulaic. You can run through and practice 100 leetcode problems and likely get some exact variation in interviews. While cases tend of be somewhat formulaic, you can run through 100 cases if you'd like and get bombarded with an idea/case/situation that you have no experience in or where the interviewer expects something different
4. You are graded on your articulateness, creativity, etc., much more subjectively than a CS interview
There is so much more I could add here, but there is a reason Consulting jobs have a lower acceptance rate than even the most competitive CS jobs (less the Jane Streets, etc.)
I know this because I am a CS minor and an econ major, and I have final round interviewed for Jane Street, HRT, OC&C, and BCG/Bain.
Someone is coping
LETS GOOOOOOOOO
Haha yee buddy 😎
hair is as sharp as the mind, can stab through the interview
Thank you - the hair is the secret to success
20:25 100M$**
Here early :)
good video. too many ads jesus christ arent you already making enough money lmao
LLm can do this better and faster😂