S11E3: Bain Private Equity Case Interview Example (Gumby's Pizza)
Strategy Simplified
00:00
How to Evaluate a Pizza Chain
A PE firm wants to evaluate whether this mom and pop pizza chain called Gumby, what their value is currently. And if it's possible to double their gross margin in three years and ultimately sell to another family. So basically they want to evaluate this on what, on either a profit revenue or cost standpoint. Is that okay? Yeah, and I would say evaluated on a profit standpoint since they're looking to grow gross gross margin. Okay. Great. Do we have a little more understanding as to why this PE firm is really interested in a pizza chain? Do they have it in the portfolio? It's a good question. My instinct is they think that food is easy to franchise and grow
Transcript
Play full episode
