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1、MARSInterview(CaseStudysection)Case1:CoffeeShopTheProblemAfriendaskedmeifIwantedtobuyhiscoffeeshopfor$100,000.DoyouthinkIshoulddoit?InformationGatheringReadthisinformationwellbeforeyougivethecase.Sharethisinformationineachbulletonlyifthecandidateasksforitinaclearanddelibera
2、teway.Location:ThecoffeeshopisinVail,ColoradoProducts/Prices:Cupofcoffee,$4.00BottledWater,$2.00Pastries,$3.00VariableCost:Allproductshavea50%marginCustomers:Theshopservesmostlylocals,nottourists,sodemandisconsistentthroughouttheyearOtherCosts:Rentwas$500permonthWages(for2e
3、mployees)were$8.00perhour.Theshopisopen12hoursaday,sixdaysaweekTellthecandidatethathecanassumethatthecoffeeshopwillbringinconsistentprofits.AnalysisThisisavaluationquestion.Sotogetthevalueofthecoffeeshopweneedfirsttogettheprofitability.RevenuesEstimatemarketsize.Assumethatt
4、hecoffeeshopgets10customersperhourinslowhourand20customersperhourinabusyhour.Thefirstandlast2hoursofthedayarebusyhours.Sothecoffeeshopgets20x4+10x8=160customers/day.IfweassumeallthehoursasbusyhoursonSaturday,thenwehave20x12=240hoursonSaturday.Numberofcustomers/week=160x5+24
5、0x1=1040Numberofcustomers/year=1040x50=50,200Assume60%ofcustomersordercoffee,30%orderpastry,and10%orderabottleofwater,thenthespendis:50,000x60%x4+50,000x30%x3+50,000x10%x2=$175,000FixedCostsRent=500x12=$6,000Wages=$8x12x6x50=$30,000Wecanalsomakeassumptionsaboututilitiesandi
6、nsurance.ProfitsProfits=175,000x50%-36,000=$52,500Assumea40%taxrate:Profitsaftertax=52,500x(1-40%)=$31,500ValuationIfweassumethatthecoffeeshopisinoperationfor5yearsandweusea10%WACC,thenitsvaluewouldbe:Value=31,500+31,500/1.1+31,500/1.1^2+31,500/1.1^3+31,500/1.1^4=$131,000Co
7、nclusionAslongasthesaleswouldbeconsistentfortherestofthe5years,itwouldbeprofitabletobuythecoffeeshop.Furtheranalysiscouldbedoneonthemanagementexperienceandthecompetitiontoensurethatsaleswouldbeconsistent.Case2:HEALTHTheProblemAUShealthcareprovidersufferedaprofitdeclinelasty
8、ear.Youarehiredtosolvethisproblem.InformationGatheringReadthisinformationwellbefor