Unicloth

This M&A case asks the candidate to choose between two remaining capital-deployment options — primary-market investment and M&A — after a joint venture has been ruled out with the client, and to support that choice with a quantitative ROIC (return on invested capital) model built from parameters the interviewer provides. It tests financial acumen, structured quantitative reasoning, and the ability to turn a formula into a clear investment decision under given inputs.

Key Insights:

1. The decision is already narrowed to two comparable options, so a single consistent metric — ROIC — is the right lens for an apples-to-apples comparison.
2. Structure before arithmetic: laying out the ROIC formula and confirming each input first prevents calculation errors and shows the interviewer clear logic.
3. The answer is only as reliable as the interviewer-supplied inputs, so stating assumptions and sanity-checking sensitive drivers matters as much as the final number.
4. ROIC does not capture timing, integration, or liquidity risk, so the quantitative result should be paired with qualitative judgment before recommending.
5. Deploy capital only when the chosen option clears the client’s hurdle rate; if neither does, holding is the disciplined recommendation.