Problem-solving - What Risks Would the Buyer Consider
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Investment Banking Superday interview problem-solving question - What risks would the buyer consider?
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What if I was the potential purchaser of, of this business, what do I need to think about in terms of risks, going forward? What would me as the purchaser be worried about going forward in terms of the future, performance and future returns from this business? What sort of things? Yeah. I think that there are definitely a number of risks, being in a small town, especially as a, you know, a small business.
you know, these days a lot of more young people are deciding to move into the cities.
So if you are in a village of a population is declining, that means that your market is going down.
So I think that looking at the population trends and that area is definitely a very big factor.
looking at the quality of the neighbourhood in terms of, you know, nearby school districts, you know, public safety statistics around that.
I think that could present, you know, a very important part of your analysis as well.
So there's definitely several risks.
I think with, you know, cosmetic prices, you know, that is something you have to look out for as well. Yeah. How much could your business be affected by changes in commodity prices or prices in cosmetics?