When considering a company's potential sale, it is essential to understand its current value and future potential. Our scope of work includes a thorough review of the company's business over the past 3-5 years, with the aim of providing recommendations for improving all aspects that affect its value. This includes a detailed analysis of financial statements, projections for a period of 5 years, and the application of multiple valuation methods. We also offer support in preparing and coordinating a successful share sale transaction, including access to potential investors and coordination during the due diligence process. The text below will outline the specific procedures and services we offer to ensure that our clients are well-prepared for the potential sales process.
- A comprehensive review of the company's business over the past 3-5 years, in order to better prepare for further steps in the potential sales process.
This would result in the preparation of findings and recommendations for improving all aspects that affect the value of the company. Such analysis procedures would include:
- Analysis of financial statements (balance sheet, income statement, cash flow statement)
- Analysis of individual positions in financial statements
- Analysis of profitability, liquidity, activity, and structure indicators
- Normalization of EBITDA - as a key indicator that affects the company's value from an investor's perspective
- Analysis of revenue and expenses and their impact on EBITDA and margin
- Analysis of capital expenditures (CAPEX) and operating expenses (OPEX)
- Analysis of profitability by category
- Analysis of net working capital and its impact on the company's value
- Preparation of comprehensive financial projections spanning a period of 5 years, serving as the foundation for evaluating the company's overall value:
- Sales and other revenue projections
- Earnings projections
- Operating expense projections
- Net working capital projections (receivables, inventory, and liabilities to suppliers)
- Long-term and fixed asset and depreciation projections
- Financial liability and interest expense projections
- Other balance sheet item projections
- EBITDA projections
- Cash flow projections
- Valuation of the company
- Evaluation of the adequacy of valuation methods in relation to the results of analysis (step 1) and projections (step 2)
- Evaluation of the valuation method from an investor's perspective, as well as factors that investors consider in the valuation process
- Calculation of the value using the net asset method
- Calculation of the value using discounted cash flow (DCF) method
- Calculation of the value using the multiples method
- Calculation of the value using the comparable company method (if appropriate)
- Preparation of the share sale transaction
- Creation of optimal transaction structure and dynamics
- Preparation of a list of potential strategic investors
- Preparation of a teaser as a short presentation of essential information about the company to investors
- Preparation of a detailed presentation (information memorandum) if necessary
- Preparation of a confidentiality agreement
- Access to potential investors
- Initiating initial contact with defined or selected investors
- Receiving feedback from investors
- Support in responding to questions and preparing documentation and information requested by investors
- Maintaining communication with investors and responding to inquiries
- Coordination during the investor's due diligence process
- Assistance with the preparation of documentation.
- Organization of a data room
- Supervision of the due diligence process
- Assistance with preparing responses to questions
- Advising on how to treat potentially problematic items arising from due diligence
Contact us today to learn more about how we can help with your M&A needs.
