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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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Raising Capital

Businesses can use either debt or equity capital to raise money—where the cost of debt is usually lower than the cost of equity.

Debt holders usually charge businesses interest, while equity holders rely on stock appreciation or dividends for a return.

Preferred equity has a senior claim on a company’s assets compared to common equity, making the cost of capital lower for preferred equity.

The financial models from Achieve Corporation involves determining the mix of debt and equity that is most cost-effective for your business.

Our scope of works normally includes:

  • Investigating and advising on the different funding options – debt, equity, grants, supplier finance
  • Preparing and presenting a set of forecasts and a business plan
  • Helping clients assess the commercial, accounting, and cash flow implications of financing structures
  • Introductions to funders based upon our existing network of PE companies’ and corporate lenders
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Ratios and Statistics

Financial ratios are powerful tools to help summarise financial statements and the health of a company.

They enable the business to ensure it is running at the optimum efficiency by calculating working capital, pricing structures, profit margins and efficiency of assets used.

An analysis is normally done on the past performance of a business with future performance then be forecast. The gap analysis between the two sets of figures highlights potential efficiencies, to be made, resulting in cost reductions and increases to the bottom line.

The Achieve Corporation Ratios and Statistics analysis includes:

 Profitability

  • EBIT
  • EBITDA
  • Adjusted EBITDA 
  • ROA
  • ROCE
  • ROE
  • Gross Profit Ratio
  • Operating Profit Ratio
  • Pre-tax Profit Ratio
  • Net Profit Ratio

Liquidity

  • Current Ratio
  • Quick Ratio
  • Working Capital
  • Working Capital Ratio

Solvency/Leverage

  • Debt Equity (DE) Ratio
  • TOL/TNA
  • Capital Gearing Ratio
  • Degree of Operating Leverages (DOL)
  • Degree of Financing Leverages (DFL)
  • Debt Service Coverage Ratio (DSCR)
  • Future Capital Pricing Based on ROCE

Efficiency

  • Debtors Turnover Ratio
  • Debtors Days
  • Capital Turnover Ratio
  • Future Capitalisation based on Capital Turnover

Valuation

  • Earnings Per Share (EPS)
  • Price Earnings (PE) Ratio
  • Market Value based on Price Earnings Ratio
  • Future Earning Per Share 
  • Net Asset Value (NAV)
  • Book Value Per Share
  • Intrinsic Value Per Share
  • Free Cash Flow
  • Discounted Cash Flow on Forecast Period
Fee Structure As Flexible As You. Unlock Your Business Potential
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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.