Case Study

Our Engagement Director has been approached by Dr. Alvarez, the CEO of Cerveza S.A., a European regional brewer and longstanding McKinsey client.

Dr. Alvarez has asked for help regarding the potential acquisition of QT Breweries in China. This transaction has been suggested by an investment bank. The bankers’ projections seem rather optimistic and Dr. Alvarez wonders whether this transaction makes sense at all.

The request for help consists of a number of elements:

• General strategic considerations
• Realistic top-line projections (market positioning, product portfolio, cost structure)
• Stand-alone valuation of the target
• Potential for operational improvements (cost reductions) and organic revenue growth
• Deal structuring

By the way, the bid needs to be submitted on Monday, so there is little time left!