What needs to be True?

Question 1

Market Entry (What needs to be true for recommendation?)

Answer 1

1. The market is attractive
2. The company can capture meaningful market share/competition is weak
3. The company has the capabilities to enter the market
4. The company will be profitable from entering the market/or meet its desired metric of success

Question 2

Profitability (Evaluation on Two Fronts)

Answer 2

1. Quantitative: revenue, costs (address first)
2. Qualitative: changes among customers, competitors, or changes happening in the market overall

Question 3

Investment (M&A) (What needs to be true?)

Answer 3

1. The company’s market is attractive
2. Competition in the market is not strong
3. The target company is attractive
4. The acquisition will generate high returns

• acquisition generates meaningful synergies
• acquisition target is at a great price and will generate high returns on investment