An Indian company wants to open a subsidiary in Saudi Arabia or the UAE. How would you build the business case?
What the interviewer wants to hear
- Market size and demand assumptions with sources
- Revenue ramp, pricing and customer acquisition
- Set-up costs: licensing, office, visas, local partners, working capital
- Local tax, regulation and currency considerations
- NPV, payback, peak funding need, scenarios and go or no-go milestones
Model answer
I would start with the market: size, target customers, competitors and realistic share, with sources such as industry reports and conversations with potential clients. Then I would model a revenue ramp, since new markets take time: number of customers won per quarter, pricing in local currency and sales cycle length. On costs, I would include one-time set-up costs like trade licences, office fit-out, visas and hiring, plus ongoing salaries, rent, marketing and any local sponsor or partner fees. I would include working capital, since government and corporate clients in the region can pay slowly. I would add local corporate tax, VAT and transfer pricing points to confirm with tax advisers. The outputs would be NPV, payback, and especially peak funding need. I would show base and downside cases and propose milestones, such as first five clients within a year, that decide whether to invest further.
Can you answer it under time pressure?
Take a timed hard round and get scored on every answer.
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