Case Interview Questions #00111: You are a partner in Baker & McKenzie, a small Chicago-based law firm specializing in divorce. Your firm decides to use 1-800-DIVORCE as your primary contact phone number. You call the number and you find that its owner, a shoemaker facing an extreme liquidity crisis, is willing to sell you the number right now for $100K in cash. Should your law firm purchase this 1-800 telephone number at a price of $100K? Yes or no, and why?
This is a traditional market-sizing case question. The key here is to be systematic, gradually growing from the case level and taking a bottom-up approach to determining the total value of having the designer telephone number. Unless the case question is fairly unambiguous, you probably should ask some clarifying questions. Examples of discrete elements you’ll need to answer include: