Stage 6 (2023) “Merge It!”
This is an actual case study that was presented to the participants of the Financial Modeling World Cup 2023, Stage 6 (September 1-4).
Winter Co. is a fictional company in the imaginary country of Sezonia that manufactures consumer heating equipment. The business is very seasonal – most of the sales take place in late autumn and winter. However, a lot of the company’s SG&A costs and fixed manufacturing costs can’t be decreased during the low season. You’ve been working on a consulting project, trying to find ways to improve the company’s financial results during the low season. You have identified another company, Summer Co., that manufactures cooling equipment. If you could merge both companies, a combined company would enjoy significant synergies. Now it’s your turn to make calculations and persuade the management of Winter Co. to go ahead with the deal.
The downloadable file consists of the following:
–Task: PDF file with Case Materials; PDF file with Questions; Excel file with Assumptions
–Solution: Excel file with full Solution Model; PDF file with correct Answers in Bold