Thank you for your kind words! We're thrilled to hear that you found our video helpful and informative, especially as an MBA grad. If you need further help with your preparation, we invite you to book a free strategy call with us here: bit.ly/3zeLAmO. Our team of experts is always here to support you in achieving your career goals. Thank you again for watching!
🎯 Key points for quick navigation: 00:00:00 *⚽ Introduction to M&A Case* - Overview of M&A case importance in consulting, - Introduction to the specific case about a European soccer team considering recruiting Lionel Messi, - Presenter’s background and purpose of the video. 00:01:11 *🔍 Case Structure Overview* - Review of the four parts of a consulting case interview: opening, structure, analysis, and recommendation, - Encouragement to pause the video and practice along. 00:02:08 *📋 Opening the Case* - Recap of the prompt: European soccer team considering Messi, - Importance of clarifying questions in the opening, - Example of how to approach the opening step. 00:02:50 *📝 Structuring the Case* - Outline of key issues to consider: profitability, competition response, and risks, - Examples of second-level issues under each topic. 00:04:16 *📊 Analyzing the Exhibit* - Explanation of the transfer fee exhibit, - Calculation of Messi’s estimated transfer fee, - Collaboration with the interviewer on solving the case. 00:05:40 *💰 Calculating Incremental Revenue* - Detailed calculation of the team’s current revenue, - Estimation of revenue increases with Messi’s acquisition. 00:09:21 *🧮 Incremental Profit and Payback Period* - Calculation of incremental annual profit with Messi’s salary, - Determination of the payback period for the investment. 00:09:49 *🗣️ Formulating the Recommendation* - Steps to formulating a recommendation: recapping the question, providing the recommendation, outlining reasons, addressing risks, and next steps. 00:11:29 *📝 Five Tips for M&A Cases* - Incremental benefits and cost savings, - Qualitative benefits and cultural impact, - Having a clear yes/no recommendation, - Understanding success metrics and payback period, - Detailing risks and their implications. Made with HARPA AI
Hello! Can you please explain the part where you mention the transfer fee = $5 million times their goal contribution? Neymar's goal contribution is 24 (round up to 25) x 5m = 125m. Isn't Mbappe + Neymar = nearly 10 times; Ronaldo and older players = 2 mil x goal contribution? Thanks!
Hi! Yes, you are correct that Neymar and Mbappe are 10x and other players are 2x their goal contribution. The 5x mentioned is the average for all players with the caveat that older players have lower transfer fee vs. younger players. This is a way to talk about the insights from the exhibit and isn't necessarily the only way. You can directly mention that Neymar/Mbappe are about 10x their goal contribution since they are younger, while older players like Ronaldo have a 2x transfer fee. Hope this helps! If you need further help with your interview, my team and I can help! Here's the link to book a FREE call with our team to get started: bit.ly/3zeLAmO.
Good question! The average transfer fee for a player moving from one football team to another is $5 million times their goal contribution from the prior year. Older players trade at lower multiples because they will not continue to play as long. Messi is 35, old for a pro football player, so he will trade at 2-3 times last year’s goal contributions of 55 goals. 55 goals x 2-3 = $110- 165 million. The average of those two numbers is $137.5 million which I rounded to $140 million to keep the math straightforward. Hope that helps! And good luck with your consulting case interview prep!
Amazing video! The average Retirment age for football players is 27. And the highest average age I could find was 35. If I was given the case, I would recommend NOT acquiring Messi . As according to statistics, he'll mostly retire before the payback period is complete. What do you think?
Great analysis! Your point about the average retirement age for football players is valid. However, it's essential to consider Messi's exceptional skill and marketability, which could bring long-term benefits beyond the payback period. Balancing the upfront cost with potential revenue growth and brand enhancement might still make the acquisition worthwhile.
Great explanation, also in very structured manner. Hope to learn a lot from your videos as a MBA grad. Kudos
Thank you for your kind words! We're thrilled to hear that you found our video helpful and informative, especially as an MBA grad. If you need further help with your preparation, we invite you to book a free strategy call with us here: bit.ly/3zeLAmO. Our team of experts is always here to support you in achieving your career goals. Thank you again for watching!
🎯 Key points for quick navigation:
00:00:00 *⚽ Introduction to M&A Case*
- Overview of M&A case importance in consulting,
- Introduction to the specific case about a European soccer team considering recruiting Lionel Messi,
- Presenter’s background and purpose of the video.
00:01:11 *🔍 Case Structure Overview*
- Review of the four parts of a consulting case interview: opening, structure, analysis, and recommendation,
- Encouragement to pause the video and practice along.
00:02:08 *📋 Opening the Case*
- Recap of the prompt: European soccer team considering Messi,
- Importance of clarifying questions in the opening,
- Example of how to approach the opening step.
00:02:50 *📝 Structuring the Case*
- Outline of key issues to consider: profitability, competition response, and risks,
- Examples of second-level issues under each topic.
00:04:16 *📊 Analyzing the Exhibit*
- Explanation of the transfer fee exhibit,
- Calculation of Messi’s estimated transfer fee,
- Collaboration with the interviewer on solving the case.
00:05:40 *💰 Calculating Incremental Revenue*
- Detailed calculation of the team’s current revenue,
- Estimation of revenue increases with Messi’s acquisition.
00:09:21 *🧮 Incremental Profit and Payback Period*
- Calculation of incremental annual profit with Messi’s salary,
- Determination of the payback period for the investment.
00:09:49 *🗣️ Formulating the Recommendation*
- Steps to formulating a recommendation: recapping the question, providing the recommendation, outlining reasons, addressing risks, and next steps.
00:11:29 *📝 Five Tips for M&A Cases*
- Incremental benefits and cost savings,
- Qualitative benefits and cultural impact,
- Having a clear yes/no recommendation,
- Understanding success metrics and payback period,
- Detailing risks and their implications.
Made with HARPA AI
Thanks for sharing this!
Hello! Can you please explain the part where you mention the transfer fee = $5 million times their goal contribution? Neymar's goal contribution is 24 (round up to 25) x 5m = 125m. Isn't Mbappe + Neymar = nearly 10 times; Ronaldo and older players = 2 mil x goal contribution? Thanks!
Hi! Yes, you are correct that Neymar and Mbappe are 10x and other players are 2x their goal contribution. The 5x mentioned is the average for all players with the caveat that older players have lower transfer fee vs. younger players.
This is a way to talk about the insights from the exhibit and isn't necessarily the only way. You can directly mention that Neymar/Mbappe are about 10x their goal contribution since they are younger, while older players like Ronaldo have a 2x transfer fee.
Hope this helps! If you need further help with your interview, my team and I can help! Here's the link to book a FREE call with our team to get started: bit.ly/3zeLAmO.
how did u calculate the upfront cost of 140 mn ????
Good question! The average transfer fee for a player moving from one football team to another is $5 million times their goal contribution from the prior year. Older players trade at lower multiples because they will not continue to play as long. Messi is 35, old for a pro football player, so he will trade at 2-3 times last year’s goal contributions of 55 goals. 55 goals x 2-3 = $110- 165 million. The average of those two numbers is $137.5 million which I rounded to $140 million to keep the math straightforward. Hope that helps! And good luck with your consulting case interview prep!
Amazing video!
The average Retirment age for football players is 27. And the highest average age I could find was 35. If I was given the case, I would recommend NOT acquiring Messi . As according to statistics, he'll mostly retire before the payback period is complete.
What do you think?
Great analysis! Your point about the average retirement age for football players is valid. However, it's essential to consider Messi's exceptional skill and marketability, which could bring long-term benefits beyond the payback period. Balancing the upfront cost with potential revenue growth and brand enhancement might still make the acquisition worthwhile.
3 billion good help