M&A cases are a staple in consulting interviews. They simulate real-life client scenarios where a company is considering acquiring, merging with, or being acquired by another. These cases test your ability to evaluate strategic alignment, quantify benefits, and weigh risks under uncertainty.
Your job is to help the client decide: Should we do the deal? And if so, how should we execute it?
1. Clarify the Type of Transaction
“Our client is a European telecom company considering acquiring a regional fiber provider in Spain to expand coverage. Should they proceed?”
Before jumping in, clarify the context. Are we talking about a horizontal merger (same industry), a vertical acquisition (supply chain), or diversification into new markets? Is the client the buyer or the target? These answers shape your framework.
2. Structure: 4 Key Buckets
A strong MECE framework for M&A includes:
- Strategic Fit: How aligned is the target with our business goals?
- Synergies: What value (cost savings, revenue growth) will the deal create?
- Financials: Is the price fair? Will the deal create value for shareholders?
- Risks & Integration: What could go wrong during or after the deal?
3. Analyze Strategic Fit
Start by asking: Why is the client interested in this acquisition? Look at:
- Market expansion or consolidation
- Access to new technology, products, or customers
- Brand or capability alignment
“I’d first like to understand if this acquisition supports the client’s long-term growth strategy.”
4. Evaluate Potential Synergies
Synergies are where most M&A value comes from—if they’re real. Break them into:
- Cost synergies: Reducing overhead, shared operations, consolidated teams
- Revenue synergies: Cross-selling, expanded distribution, bundled offerings
- Operational synergies: Efficiency gains, tech integration
Estimate the timeline and feasibility of achieving these synergies post-acquisition.
5. Assess the Deal Financials
You don’t need to build a full model—but you should understand key deal metrics:
- Purchase price and valuation multiples
- Financing method: debt, equity, cash
- Projected ROI or payback period
“Do we know the EBITDA multiple being paid? How does it compare to industry benchmarks?”
6. Identify Key Risks
M&A deals fail more often than they succeed. Common risks include:
- Cultural clashes or poor integration
- Customer attrition
- Overpaying / synergies not materializing
- Regulatory or antitrust hurdles
Propose ways to mitigate risk—e.g., staged integration, pilot rollouts, retention plans for key talent.
7. Make a Recommendation
Summarize your take based on fit, synergies, valuation, and risks. Don’t forget to include how you’d execute the deal:
“Given the strong strategic fit and cost synergy potential, I’d recommend proceeding with the acquisition—provided the client negotiates a fair valuation and sets up a robust integration plan.”
8. Common M&A Variations
Watch for these common case twists:
- Target evaluation: “Should we acquire company A or B?”
- Divestitures: “Should the client sell off a business unit?”
- Joint ventures: “Should we partner or acquire?”
- Post-merger integration: “How do we ensure success after the deal?”
Final Thoughts
M&A cases reward candidates who balance logic with judgment. You’re not just crunching numbers—you’re advising a CEO on one of the biggest decisions their company will make.
Be structured. Be skeptical. And always tie your recommendation to long-term value creation.