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Since profitability was a concern, Bain benchmarked EBITDA margin of Client co against the peer set to understand competitive positioning. The chart below represents margin
Since profitability was a concern, Bain benchmarked EBITDA margin of Client co against the peer set to understand competitive positioning. The chart below represents margin range of all companies in Pharmaceutical industry with three key players highlighted separately. 2015 represents the actual margins while 2017 refers to estimates based on analyst perception of companies' current strategy EBITDA margin range 40% 31% 30 Peer 2 27% Peer 2 20 Peer 1 Peer 1 10 Client co Client co 8% 7% CY2015 CY2017 Q5. Calculate the approximate increase in Client Co's profits from 2015 to 2017 (Figure 1): Assumptions- 1. Client Co's revenue in 2015- USD 2.5B 2. Revenue grew at 3%, year on year 3. EBITDA= Profits a) -5% b) 10% c) 35% d) 50%
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