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Private equity firms are investment management companies that use investor money to acquire companies in the hopes of generating a high return on investment.Īfter acquiring a company, a private equity firm will try to improve the company’s operations and drive growth. This type of M&A case is slightly different from the first type because private equity firms don’t operate like traditional businesses. The second type of M&A case is a private equity firm deciding whether to acquire a company. Acquire intellectual property, proprietary technology, or other assets.Gain access to the other company’s distribution channels.Gain access to the other company’s customers.In making an acquisition or merger, a company may be trying to: There are many reasons why a company would want to acquire or merge with another company. They are considering acquiring a company that provides an online platform for small businesses to sell their products. A company is deciding whether to acquire or merge with another company.Įxample: Walmart is a large retail corporation that operates a chain of supermarkets, department stores, and grocery stores. The first type of M&A case is the most common. A private equity firm acquiring a company.

A company acquiring or merging with another company.

There are two types of M&A cases you’ll see in consulting case interviews: The new owner of the company will absorb all of the acquired company’s assets and liabilities. Following the acquisition, the company being purchased will dissolve and cease to exist. They are owned by a single entity.Īn acquisition is a business transaction in which one company purchases full control of another company. After the merger, the two companies are no longer separately owned and operated. Typically, the two companies merging are roughly the same size. These cases are fairly straight forward and predictable, so once you’ve done a few cases, you’ll be able to solve any M&A case.Īccording to Investopedia, a merger is a business transaction that unites two companies into a new and single entity. You are likely to see at least one M&A case in your upcoming interviews, especially at consulting firms that have a large M&A or private equity practice.

Merger & acquisition (M&A) cases are a common type of case you’ll see in consulting interviews.