Bain Private Equity Case Interview Example (Gumby's Pizza)

In this Bain and Company private equity case interview example, Management Consulted coach and former McKinsey Associate Partner Divya Agarwal leads a 4th-year PhD candidate (Biomedical Engineering at Georgia Tech and Emory University) through a case interview.
The case features a private equity company looking for insight into purchasing a pizza chain (Gumby’s Pizza). Go or no go? Hit ‘play’ to see our candidate’s final recommendation!
Thanks to Bates White for making this session possible! The DC-based economic consulting firm has open opportunities for several roles, particularly experienced consultants and experienced managers (2-5+ years experience).
Relevant Links:
- Work with Divya via 1:1 interview coaching: bit.ly/3rOdZzV
- Join our Black Belt Case Prep cohort: bit.ly/3ZPvMU1
- Check out the case study used in this interview: bit.ly/46IFoC5
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Have consulting questions or want tips on how to optimize your resume for consulting applications? Register for an Extreme Consulting Makeover session: bit.ly/46p8gzJ

[@VyshfulThinking]

Why are we looking at SG&A costs when we are trying to maximize Gross Profit?
1. Revenue growth
2. COGS component in Cost
Either grow revenue or reduce COGS to make a dent on Gross Margin. I would have clarified this initially to be sure to include only relevant costs.

[@HandsOnRealEstate]

Dang I loved listening to those two amazingly smart women.

[@CimolOk-nz5yj]

🎯 Key Takeaways for quick navigation:
00:04 🍕 *Case Introduction: Bain & Company's approach to a private equity case involving a pizza chain named Gumby.*
- Overview of the case: A PE firm is considering purchasing Gumby, a pizza chain.
- Key aspects: Gumby operates 30 stores with $125 million in annual revenue; the PE firm's goal is to double the gross margin in 3 years.
01:09 📊 *Initial Framework Discussion: Developing a strategy for increasing Gumby's profitability.*
- Focus on improving profitability through revenue or cost management.
- Discussing the potential for growth and exploring different avenues for profit maximization.
03:13 🧑‍💼 *Presenter Introduction: Lauren Coritz, a senior consultant, introduces her background and experience.*
- Description of the presenter's professional background and current role.
- Insights into the consulting industry, highlighting the differences between management and economic consulting.
06:42 💡 *Strategic Analysis: Brainstorming strategies for Gumby's profit maximization.*
- Detailed analysis of Gumby's business model and market position.
- Consideration of various factors like product mix, cost management, and market expansion.
11:04 📈 *Data Review and Hypotheses: Examining competitive landscape and market segments.*
- Analysis of Gumby's market share among different customer segments.
- Hypothesizing strategies based on the competitive landscape and customer preferences.
16:00 🧮 *Financial Analysis: Discussing revenue generation and margin improvement.*
- Exploring revenue sources and margins for different products.
- Ideas for boosting revenue and reducing costs to enhance profitability.
21:06 🕵️‍♂️ *Deeper Business Analysis: Investigating Gumby's unique selling points and customer satisfaction.*
- Delving into Gumby's strengths and potential areas for improvement.
- Suggesting methods to increase customer loyalty and market penetration.
26:10 🚀 *Final Recommendations: Concluding thoughts on Gumby's growth strategy.*
- Summary of key strategies for improving Gumby's gross margin.
- Recommendations for cost reduction, revenue enhancement, and product expansion.
29:33 🤔 *Case Reflection and Feedback: Reflecting on the case approach and learning points.*
- Discussion of the case-solving process and insights gained.
- Feedback on strategy formulation and data interpretation techniques.
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