0:07 what's a case interview like how should
0:09 you interact with their interviewer how
0:11 long should a case interview take these
0:12 are some of the questions that we get as
0:13 people are preparing for their case
0:16 interviews with Bay in this video you'll
0:18 get a chance to see someone set up their
0:20 analysis and their framework work
0:21 through their analysis including doing
0:23 some math and synthesize their
0:25 recommendation at the end we hope this
0:27 interview example helps you feel
0:28 prepared and confident heading into your
0:31 interviews so let's take a look at a cas
0:33 interview hi Eric great to meet you
0:34 great to meet you so glad to have you
0:36 here today excited to be here a little
0:38 nervous but excited yeah how are you
0:40 doing just more generally I'm good I'm
0:41 good yeah office is beautiful
0:43 everybody's been great so far and just
0:44 yeah excited to get going with the case
0:46 I'm so glad well I'll be the one pushing
0:49 us along don't worry if I finish us up
0:51 move us to another area I'll be in
0:53 charge in terms of the time management
0:54 good to know thank you great so should
0:56 we jump in yeah let's do it all right so
0:57 let me give you a little bit of the
1:00 context of the case now one thing I love
1:03 about this one is I do all consumer
1:05 products and Retail work for you know my
1:08 normal job here at ban and so this is
1:10 one of those consumer products types of
1:12 cases and it's based off of a real Bane
1:14 case okay and so let me give you a
1:15 little bit of the situation we're going
1:17 to Blind all of the company names for
1:18 the purposes of
1:21 confidentiality so our client is foodco
1:24 they're a multi-billion dollar client
1:26 that has leading Brands across many
1:28 different food categories right now
1:29 they've narrowed in on the alternative
1:32 milk category they believe it's growing
1:34 quickly has some attractive elements to
1:36 it and alternative milk you can Define
1:39 as anything that's non-dairy plant-based
1:42 so things like almond oat coconut soy
1:45 you name it all goes within alternative
1:46 milk I think I used almond in my latte
1:48 this morning so there you go so you're
1:51 you're familiar already they've
1:53 partnered with Bane to determine how
1:55 they want to enter and whether or not
1:56 they think this asset is the right way
1:59 to enter the space okay because they're
2:00 pretty familiar with this Market they've
2:03 narrowed in on a Target named smilk and
2:06 smilk in terms of its profile it's
2:07 pretty attractive profile that's why
2:09 they're interested in it okay to give
2:11 you some facts on it it has over the
2:13 past three years been doubling its
2:16 profit each year oh wow it's impressive
2:18 very very strong performance overall it
2:21 has about 6% share of the alternative
2:24 milk market and um is expected to grow
2:27 to 8% okay so moderate modest growth
2:30 right now this smk has been able to
2:33 expand across Europe and the us but
2:36 foodco for this particular piece of work
2:39 is only interested in the US market okay
2:40 good to know so we'll be focusing on
2:43 that now here's the real complicating
2:45 element of it they expect that smk
2:48 should be able to increase its profit by
2:51 6X over the next 5 years okay so as we
2:53 think about this overall I'd love to
2:55 have you tell me a little bit about how
2:57 you would approach assessing this
2:59 question and in particular we need need
3:02 to understand whether or not this 6X
3:04 profitability growth is feasible okay
3:06 great I think I understand the situation
3:08 can I ask a couple clarifying questions
3:10 sure absolutely awesome I imagine they
3:12 have different business units like Al
3:15 men soy oat any gaps in their portfolio
3:17 that should be aware of not that it's
3:19 relevant to the case currently gotcha
3:23 and then finally just in terms of
3:25 understanding does spco have any other
3:27 specific acquisition thesis that I
3:28 should be aware of any metrics that they
3:31 want to hit or is just broad assessment
3:33 get our opinion whether it's good or not
3:35 you know that's a good question so
3:36 mostly they're focused on whether or not
3:39 they can achieve the profit okay but
3:41 what's equally important is thinking
3:43 about share and the trade-offs between
3:46 the two of those okay awesome I think I
3:47 understand the problem excited to get
3:48 into it you might have to take a couple
4:05 awesome so as I think through this
4:08 problem of how to assess uh smilk from
4:10 food Coast perspective and think through
4:12 whether the profitability target is
4:14 achievable there's really three buckets
4:17 that I want to look into first is the
4:20 alt uh milk Market itself great second
4:22 is a deep dive into smilk and their
4:24 internal operations perfect and then
4:25 finally I have some other considerations
4:27 and RIS that I want to look at Great
4:29 before we jump into your framework can
4:30 you tell me why you thought about these
4:32 three as being the main buckets that you
4:34 wanted to focus on for sure so I wanted
4:36 to first start looking at the market
4:39 because I think a core tenant of any
4:41 good acquisition or investment is that
4:43 the asset is positioned in a market that
4:46 is favorable growing has Tailwinds and
4:49 headwinds Etc then once we feel
4:51 comfortable about that that's a large
4:52 and growing Market smilk is well
4:54 positioned within it making sure that
4:57 smilk has everything that they need to
5:00 to be able to succeed capture share grow
5:02 Revenue decrease costs which will
5:03 ultimately help us to improve
5:06 profitability great and then finally
5:07 these like other risks are
5:09 considerations are more kind of deal
5:12 specific in terms of you know how might
5:14 we Finance it uh what is the balance
5:16 sheet of Food Co look like can they
5:18 bring on debt um because I think that
5:20 will impact what the ROI could look like
5:23 moving forward in terms of opportunity
5:25 cost I know that there's zero datea on
5:27 smilk right now but are there perhaps
5:28 other ways that they could enter the
5:31 market um should they do a joint venture
5:32 with somebody should they just build it
5:34 organically themselves or could there be
5:36 a better Target and then finally with
5:38 any acquisition I think making sure that
5:40 we don't lose sight of culture to make
5:42 sure that it'll fold in nicely and that
5:44 that transition plan would go smoothly
5:46 but unless there's any other questions
5:47 on kind of how I've I've thought through
5:49 this I think I want to start with the
5:52 initial hypothesis that yes this asset
5:55 would be a good acquisition for uh food
5:57 Cod to make and that they will be able
6:00 to achieve the The Profit Target
6:03 of just remind myself 6X in in the next
6:04 5 years MH and so in order to start
6:06 testing that we' really start to like
6:09 looking at this first bucket in terms of
6:11 what the overall alternative milk Market
6:13 looks like and ideally Broken Out by
6:15 segment perfect is that where you'd like
6:16 to start yes it would be great and then
6:18 after we look at that what are the most
6:20 important elements within smilk So
6:22 within smilk what I would love to
6:25 understand is looking at their
6:27 historical performance broken out
6:29 ideally by business unit um the reason I
6:32 want to look at that is to get a sense
6:33 of how they've gotten to where they are
6:36 today I know that they have doubled
6:37 profit every year for the past three
6:39 years which is really incredible growth
6:40 right and obviously there's multiple
6:42 ways that they could do that they could
6:44 be gaining market share they could be
6:46 introducing new products or they could
6:48 be cutting cost or some combination of
6:50 all of that and I think how they've
6:52 gotten to where they are today will give
6:54 us a good insight into what future
6:55 growth opportunities they might have and
6:56 help us to get a really good
6:58 understanding of whether or not that 6X
7:00 Target is achievable fantastic I like
7:01 how you're thinking about it I also like
7:03 how you're bringing it back to the
7:05 objective around this 6X so let's start
7:07 where you suggested okay and I have a
7:09 slide here that gives you a picture of
7:11 the market I would love for you to tell
7:13 me what does this tell you about the
7:16 Dynamics of the milk Market okay if I
7:19 can just take a couple moments to orient
7:24 myself so what I'm seeing is a chart of
7:27 kind of the US milk sales over the past
7:29 10 years forecasted uh into the future
7:31 for 5 years from now and the first thing
7:33 that immediately jumps out to me is you
7:35 can see that the overall Market has been
7:38 in Decline and forcasted going forward
7:41 it's at best going to remain roughly
7:43 flat that's right so from the overall
7:45 perspective not great but what is
7:47 exciting for smilk is when you do a deep
7:49 dive into the alternative milk segment
7:52 that is actually expected to grow and
7:54 and quite considerably over the next 5
7:56 years a low double digit ker is actually
7:59 pretty exciting to me and so feeling
8:01 feeling good about that and looking
8:03 closer at the data row I'm seeing some
8:06 numbers that we can manipulate in order
8:08 to get a sense of exactly what the size
8:10 of the alt milk Market is today and then
8:12 what it's going to grow to five years
8:13 from now which I think will be a good
8:15 starting point to help us understand the
8:17 feasibility of the 6X Target agree let's
8:20 go ahead and do that okay so uh in order
8:21 to combine these variables I'm thinking
8:24 we first take the alt milk share uh
8:26 today multiply that by the overall
8:27 Market size which will give us the alt
8:30 milk Market uh in dollar today and 5
8:34 years from now putting some numbers 19
8:36 billion is okay if I round that yes 19
8:39 billion times
8:45 11% that is roughly 2 billion 2.1
8:50 billion so that is today and then in 5
8:54 years we are going to uh
8:57 19.2 billion time
8:59 20% Which is 3
9:02 .8 billion but I'm going to go ahead and
9:06 round that to 4 billion so like I said
9:08 um we now have a better sense of what
9:09 might be achievable if schil just kind
9:11 of maintains market share maintains
9:13 status quo going forward it's exciting
9:17 it's 2x um but it is a far cry from
9:20 their 6X Target and so to update my
9:22 hypothesis I still think that there is
9:24 reason to believe that this would be a
9:27 good acquisition for foodco however I'm
9:29 more bearish about the achievability of
9:31 the 6X profit Target in order to get a
9:34 better sense of that achievability I
9:37 would love to look at any internal
9:38 financials that we have from smoke to
9:40 see how they've grown over the past I'm
9:43 so glad that you asked and and had us go
9:44 there because I'd love to think a little
9:46 bit about the feasibility of this share
9:48 gain now that we've isolated that they
9:50 will need to gain share to reach their
9:53 targets potentially or other levers I'd
9:54 love you to tell me a little bit about
9:57 what this competitor Market view tells
10:00 you about their ability to gain share
10:04 okay just orienting myself quickly so
10:07 what I'm seeing like right off the bat
10:10 is not too long ago only a year and a
10:12 half um there weren't that many players
10:16 and smilk was still very ncent but over
10:19 time smilk has moderately grown its
10:21 market share seems like they've
10:24 plateaued very recently and they are the
10:26 smallest player in an ever increasing
10:28 competitive and crowded Market correct
10:31 and and then just interpreting uh the
10:33 names here large snackco looks like the
10:36 market leader which could potentially be
10:38 not great for smoke if they're going up
10:40 against somebody that is very well
10:43 financed uh and very entrenched in the
10:47 market and so uh from looking at this
10:50 I'm feeling even better about the view
10:53 that the 6X uh profit might not be
10:57 achievable simply because I don't see an
11:00 easy win here in order to gain share
11:02 however I'm not going to give up um I
11:04 think some things that could help them
11:06 achieve that if any of these competitors
11:08 are potentially acquisition targets and
11:11 food co could do a quasi like roll up
11:13 strategy that's great that could be a
11:16 way um but uh what else would you need
11:19 to know about smilk to gain confidence
11:21 that they could gain share I think in
11:23 order to to gain confidence about how
11:25 they could gain share I want to know a
11:29 couple of things one is I guess I would
11:31 bucket this kind of external and
11:34 internal um considerations externally I
11:36 would love to know how customers view
11:39 them are they differentiated in any way
11:40 from a product standpoint or a
11:42 capability standpoint such that they
11:45 could steal share and then second um
11:48 from the internal perspective I would
11:50 love to know what products they offer
11:53 today are there any untapped geographies
11:55 that they're not in for example are
11:56 there any products that competitors
11:59 offer that they simply lack and then I
12:00 know we're focusing on grocery but
12:02 there's always opportunity for
12:03 partnership there's always opportunity
12:06 for um you know selling your brand
12:07 outside of grocery stores like coffee
12:11 shops um you know airport lounges Etc so
12:14 that's great so to update my hypothesis
12:16 I still think that this is a good asset
12:19 so I feel good about um the acquisition
12:21 thesis there however I'm increasingly
12:24 bearish on the ability to hit that 6X uh
12:26 rep or profitability increase over the
12:29 next 5 years in order to feel more
12:32 comfortable about that part I would love
12:35 to look internally to smoke in terms of
12:37 their financials to understand how
12:38 they've grown and like you just
12:40 suggested are there any opportunities
12:42 that they could uh kind of untap
12:44 potential to steal share that's great I
12:46 think we're going to explore both the
12:47 internal and the external that you
12:49 mentioned so first let's go to the
12:52 internal I have some data on the company
12:54 okay could you first Orient me to what
12:56 you see in terms of the data you do have
12:58 and what you would need in order to
13:01 answer this Sixx profit question so what
13:03 I'm seeing like you said we have
13:06 financial data for smilk broken out uh
13:08 from their us business and their
13:10 European business and looks like it's a
13:13 little bit of a puzzle to solve in terms
13:14 of uh some some blanks that we need to
13:17 fill in love some logic games yeah love
13:19 love some logic games and so what I'm
13:21 seeing in terms of how to well just to
13:24 react like very quickly to this it's
13:27 interesting that the US business is only
13:28 uh a quarter of overall profit
13:30 profitability compared to the European
13:32 business which is observation which is
13:33 important because we're only focused on
13:36 the US from food Coast perspective the
13:38 second thing that sticks out to me is
13:40 there's quite a a delta in terms of the
13:43 margin between the two geographies and
13:46 so you know to keep this on our radar
13:47 moving forward would' love to understand
13:50 why that Delta exists and if there's any
13:51 way that we could potentially bring the
13:53 US business up to up to Snuff with what
13:55 they're seeing in Europe but to get to
13:58 your question in terms of how to fill
14:01 this chart out out what I'm seeing is we
14:03 have Revenue today and we have the
14:06 margin so we can back solve for this
14:09 profit figure right here and then we
14:11 know in the US what the market size is
14:13 today we know what their share is so
14:16 that'll give us this value and then same
14:18 approach knowing the margin we can back
14:21 calculate what profit is that'll leave
14:22 this hole and then we can kind of fill
14:25 in from there now before we do that
14:27 going through that process what is it
14:29 going to tell you about whether or not
14:31 they can achieve that 6X profitability
14:32 so what it's going to tell me is it's
14:35 going to tell me what profit is today
14:38 and then we know what profit is today we
14:40 know what the market is expected to be 5
14:42 years from now what their market share
14:45 is expected so that'll give us Revenue
14:47 right then if we multiply by a margin
14:49 that'll give us what if everything goes
14:51 as we're forecasting no changes in
14:53 margin what profitability would be right
14:56 just looking at these numbers if we do
14:58 that like we said from before with no
15:00 material change and share they're only
15:02 expected to gain two points that's not
15:03 going to close the gap unless we see
15:06 some sort of margin increase like that's
15:09 also not going to close the gap but I do
15:12 think that there are still ways that we
15:14 could achieve this one would be if we
15:17 could increase the profitability of the
15:19 US segment to get to Europe that'll get
15:20 us some of the way my intuition is not
15:23 going to get us all the way but there
15:25 also could be some margin Improvement
15:26 that you would see from synergies
15:28 rolling into Food Co I would expect that
15:30 distribution Logistics Etc would get
15:33 cheaper also purchasing power of a
15:35 really large company could help get the
15:37 cost of goods down for these different
15:40 types of milks materials Plastics
15:45 Etc um and so I'm kind of imagining a
15:49 sensitivity Table to where if like if we
15:52 know what the market would need to would
15:54 look like in the future there's some
15:55 implied share that they would have to
15:57 get to assuming profitability Remains
15:59 the Same and and then vice versa if we
16:03 assume no share gain but uh calculate
16:05 what profitability the margin would need
16:07 to increase to hit the target that'll
16:09 help us understand the extremes of the
16:11 sensitivity table and then help us get a
16:13 better sense of could reality exist
16:15 somewhere in the middle great and bound
16:17 the potential outcomes I really like how
16:18 you're thinking about this especially
16:20 because there's a lot of things that
16:22 could go right to reduce costs overall
16:24 and help them hit their margin targets
16:25 how are you thinking about the
16:27 trade-offs though some of the headwinds
16:29 they might face great fall out there are
16:31 natural tensions between trying to
16:33 increase market share and thus increase
16:35 Revenue as well at the same time as
16:39 trying to decrease costs on one hand you
16:41 usually need to invest for growth but on
16:43 the latter situation of trying to
16:45 improve profitability that often times
16:49 comes with finding places to get better
16:50 more optimized with your budget and
16:53 maybe requires less investment um just
16:55 to protect that that margin yeah so glad
16:56 you're acknowledging that why don't we
16:58 go ahead and do the exercise us
17:00 suggested so that we can really get our
17:02 arms around what the real potential
17:04 might be to increase profit is it okay
17:08 if I just write on please do so um
17:10 revenue is 320 million profit margin is
17:13 15% so to arrive at this profit figure
17:16 is just 320 million time 15% and that
17:19 will give us the dollar value so 10% of
17:22 320 is 32 half of that is 16 which means
17:27 that this is 48 million great um what I
17:30 said earlier for the US business we know
17:34 that the market is 2 billion today and
17:41 they have six% share so that is 120
17:48 million which means 320 - 120 is 200
17:51 million we know that if this is 10% um
17:58 10% of 120 is 12 and then 18% of 200
18:02 is 36 million which checks because 12 +
18:05 36 is 48 so now that we have all of this
18:08 mapped out we can put some specific
18:09 numbers to what their actual profit
18:12 Target is great and so if they are
18:16 at 12 million
18:19 today and they need to 6X that means
18:23 they need to get to 72 million mhm and
18:25 so like I was saying in terms of
18:27 understanding how they might get there
18:29 we know that that there's going to be
18:32 some latent growth assuming they hit
18:33 their market share targets and the
18:35 market grows like we expected right so I
18:36 can figure out what that contribution
18:38 would be and then the Delta would
18:41 essentially come from the sensitivity
18:43 table that I outlined that's plan great
18:45 okay let's go ahead and do it so um we
18:48 know that go ahead and transfer over
18:52 here Market 5 years from now is going to
18:56 be 4 billion and they're going to have
18:59 8% share
19:01 which translates
19:07 to $320 million in in revenue and then
19:12 so just from that if they keep the 10%
19:14 profitability margin that means that
19:17 they are getting to 32 million so that's
19:19 good like we we've already talked about
19:23 but it is still cry $40 million short we
19:25 we need to more than double this and so
19:27 that let's go find how we might do that
19:31 and so from the revenue marketshare
19:33 perspective uh and then looking at it
19:35 from the profitability
19:44 perspective so when I look at how much
19:46 they would need to achieve we'll we'll
19:48 solve backwards here so we know that
19:51 they need 72 million if we are going to
19:56 assume the 10% profitability mhm that's
19:58 simple math we know that they need to to
20:03 grow um to $720 million of Revenue right
20:05 at that profit level at that profit
20:08 level that seems like quite a bit um if
20:10 we go ahead and figure out what that
20:13 implied market share would be uh very
20:17 quickly so we know it's a
20:20 4072 so that would be
20:25 one 4 3 2 18
20:28 18% market share MH
20:31 which is triple from what they are at
20:33 today um which is a lot to gain
20:35 especially since they plateaued out over
20:37 time did so again I think we're going to
20:39 need to dip into this profitability
20:41 perspective yes and so where I'm
20:44 thinking about here is we'll assume that
20:46 they maintain share uh that we're
20:48 forecasting of 8% so we know that
20:49 they'll be starting with
20:53 $320 million of Topline mhm again we're
20:56 trying to solve for this 72 million and
20:58 so now it is just figuring out what the
21:04 margin is and if I do this it looks like
21:14 20% but to put some math to it
21:16 it
21:22 22 2 64 and that leaves us eight
21:29 so it's like 22 to 23% great so 23%
21:31 again that's big but if we look at the
21:33 European business as potentially where
21:37 we might get to so upper bounds 18% call
21:39 it 20 maybe if we get some synergies
21:40 from foodco I think we need to do some
21:43 further analysis to see if we can unlock
21:46 fully unlock this 23% but I'm now
21:48 getting a little less bearish than I was
21:49 originally so I'm going to update my
21:52 hypothesis that this is a good asset I
21:54 like the market that they're in um I
21:57 like the growth potential from the
21:58 profitability perspective perspective
22:00 the the lever that exists particularly
22:01 here in terms of matching the European
22:04 business um and I think a combination of
22:07 these two could make the 6X profit uh
22:09 Target achievable we might not get all
22:11 the way there but I think we might get
22:12 pretty close which I think would be
22:14 exciting to Fuko right could still make
22:16 it attractive and and I like your
22:17 sensitivity because you know you don't
22:19 need it to be on either end of these
22:21 extremes but we are asking for a lot to
22:24 go right share gain and margin so why
22:25 don't we take a look at some of the
22:28 external factors that you had mentioned
22:29 um so I'd love you to take a look at
22:31 this and tell me what it it tells you
22:34 about the competitive market okay so
22:36 there's a lot of information here if I
22:40 could just Orient myself quickly so what
22:43 I'm seeing is smil compared to um looks
22:45 like a lot of the major players from
22:47 this early market share map that we
22:49 looked at earlier and what I'm seeing is
22:52 first validating that you know smilk is
22:53 that where they are today they a smaller
22:56 player in the market and then you know
22:58 alt milk 5 and large snackco are kind of
23:00 the Behemoth right which it's exciting
23:01 that in the last 18 months they've been
23:04 able to do this again I think points to
23:06 the attractiveness of this Market but
23:08 also paints a potentially negative light
23:10 from the competitive landscape I love
23:12 seeing for smilk some of the word
23:15 associations here fun delicious premium
23:16 like that sounds like a really good
23:19 brand that could be you know kind of the
23:20 core tenants and assets that we could
23:23 leverage for for future growth again
23:25 this High customer satisfaction I think
23:28 is only solidifying that this might be
23:30 bad right now the fact that customer
23:32 awareness is low but if we're starting
23:33 from a low base I think there's
23:35 opportunity that we could use to
23:37 increase um that going forward which
23:39 would help us increase sales help us
23:42 improve the market share that we have
23:45 and then the pricing difference is quite
23:47 interesting as well it looks like we're
23:50 roughly kind of middle of the road
23:52 whereas you know there might be some
23:55 upward Potential from pricing that we
23:57 see um you know alt milk has gained a
24:00 ton of share yes people do view it as
24:03 overpriced but um you know there might
24:05 maybe we don't go all the way to $6 but
24:07 it I think there might be some room
24:08 especially because we're seeing as
24:10 premium and that's not a word
24:11 association I see here so maybe the
24:14 willingness to pay for a premium product
24:17 should be there and so again I think
24:18 going back to the math that we just did
24:21 in terms of how to steal market share
24:23 this could be an Avenue and pricing is
24:25 really exciting because it is a lever
24:28 that is not intention it flows to the
24:31 bottom line and so um with this again
24:33 hypothesis I feel even better about this
24:35 asset after seeing this table and I also
24:36 feel a little bit better about the
24:38 profitability target do we have
24:40 information on customers willingness to
24:42 pay or the potential to run a pilot in
24:44 terms of to get some data of How High we
24:46 could take prices without damaging
24:48 volume that's a great question
24:49 absolutely something that we would do
24:52 and did do Under the course of this but
24:53 one thing that I you know would love to
24:55 know quickly is as we think about
24:58 deepening our insights and analysis for
25:00 Food Co and we know that they are
25:02 fantastic in terms of building platforms
25:04 and acquiring and I think it was a
25:05 comment that you made earlier as well
25:07 that they could start to think about
25:09 that where do you think that they could
25:11 go here in terms of their their overall
25:14 portfolio yeah so I I think it was one
25:15 of the when we were looking at the
25:17 market share map like potentially a
25:19 quasi rollup uh strategy and if I if I
25:21 go back to the math that we calculated
25:23 earlier 18% total market share would
25:25 help him get to that Top Line and
25:29 looking at this um you know alt milk one
25:30 adding on would help us get there and
25:33 then these other three targets if we
25:35 were to uh incorporate them into food
25:37 Coast portfolio that would help us to
25:40 reach the Target and exceed it obviously
25:42 becomes the question of are they viable
25:44 are they up for sale um and again all of
25:45 the other considerations that we
25:47 outlined in the original framework of
25:49 like culture um how we would Finance it
25:52 Etc come com to mind and if they are you
25:55 know adding to their profit profile
25:58 overall that great point cuz we don't
25:59 know what the the profitability of these
26:01 companies look like 20% share gain in
26:03 the last 18 months I imagine that came
26:04 with quite a bit investment and maybe
26:06 their margins look very negative very
26:09 likely well this has been fantastic I'd
26:11 love to take a step back and and just
26:13 ask you at this point knowing we don't
26:14 have all the information that we
26:16 typically would have where where is your
26:18 recommendation and your hypothesis at
26:20 this point my recommendation to foodco
26:22 is that they acquire smk for the
26:24 following reasons one I think the
26:26 alternative milk Market segment is
26:28 exciting expected to double over the
26:30 next 5 years and second I think smilk in
26:32 terms of the assets that it is bringing
26:36 is a great platform to be able to grow
26:39 and get close to the 6X profitability
26:41 Target customers love it it's seen as a
26:42 premium brand and there's a lot of
26:44 potential that we could tap into there
26:46 especially if we consider synergies that
26:48 food co will bring however this
26:51 recommendation is not without risk like
26:53 I alluded to the 6X profitability Target
26:56 is quite ambitious we've run the numbers
26:58 and there's going to need to be both
27:01 Market um share gain as well as
27:04 improving profitability in order to hit
27:06 that Target but understanding we might
27:08 not get all the way there I would love
27:11 to for next steps start looking into
27:13 different pricing strategies that we
27:15 could employ uh in order to prove
27:17 Revenue improve market share moving
27:20 forward and then there's always the uh
27:22 ability to negotiate with smilk on the
27:23 acquisition price understanding that
27:25 their expectations might not be grounded
27:28 fully in reality that's fantastic I'm I
27:30 your rationale makes so much sense and
27:32 I'm so glad that you've highlighted some
27:34 of the key considerations and risks
27:36 especially around pricing because to
27:38 give you a little bit of insight this
27:41 project was based off of a real case and
27:42 there wasn't a willingness to pay that
27:44 higher price so made that profit Target
27:47 even more tricky but you you absolutely
27:50 targeted the right next steps here for
27:53 this project awesome so very nicely done
27:54 and it was wonderful to meet you yeah
27:55 thank you for working through the cas me
27:57 take care I hope this video is giving
27:59 you valuable insights into the mindset
28:00 the preparation and the approach you can
28:02 take to case interviews I'd also
28:03 encourage you to take advantage of the
28:05 tips and tricks video that you can find
28:07 on our YouTube channel or our website
28:08 and there's a lot of other resources at
28:11 bane.com careers to help you prepare for
28:12 a successful interview [Music]
