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Mergers & Acquisitions Modelling

Achieve Corporation act as either the buy or sell side advisors on corporate transitions. This experience in a dual role gives us a valuable insight into the metrics, thought process and modelling needed to successfully plan the financial aspects of a merger or acquisition.

Our modelling can be used as either a:

  • Pitch deck to seek funding for a project
  • Back up financials for sign off at Board level planning committee
  • Feasibility studies to highlight potential financial synergies on acquiring targets in either a horizontal or vertical sector

The Achieve Corporation M&A modelling includes:

  • Acquirer & Target Models – Map financials, 3-statement model, discounted cash flow model
  • Deal Assumptions – Inputs, synergies, financing, value added and goodwill
  • Accretion/Dilution – Pro forma per share metrics
  • Closing Balance Sheet – Acquirer + target, adjustments, goodwill and pro forma
  • Sensitivity Analysis – Intrinsic value per share, ROE, ROI, changes in assumptions
  • Pro Forma Model – Combination of synergies, 3-statement model, Discounted Cash Flow  

For a discussion in the strictest confidence about the benefits of our M&A model, please contact Mark Roberts Senior Partner at Mark@achieve-corproation.com

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Leveraged Buyout (LBO) Modelling

A leveraged buyout (LBO) is a type of acquisition in the business world whereby the vast majority of the cost of buying a company is financed by borrowed funds. LBOs are often executed by private equity firms who attempt to raise as much funding as possible using various types of debt to get the transaction completed. Capital for an LBO can come from banks, mezzanine financing, and bond issues.

Leveraged Buyout Models are useful in:

  • Determining a fair valuation for a company (including an ability-to-pay analysis)
  • Determining the equity returns (through IRR calculations) that can be achieved if a company is taken private, grown, and ultimately sold or taken public
  • Determining the effect of recapitalizing the company through issuance of debt to replace equity
  • Determining the debt service limitations of a company from its cash flows

Using an LBO model constructed by Achieve Corporation will enable you to:

  • Calculate the actual price to be paid for a company
  • Model the company’s past and future cashflow to pay back the debt
  • Determine the earnings capacity of the business
  • Verify that the decision to acquire a business using Leverage buyout Principles is the correct one to take  

We can act for either the buy or sell side in preparation for Leverage Buyout Models.

For a discussion in the strictest confidence of the benefits of LBO modelling, please contact Olivia@achieve-corproation.com.