Private Equity Valuation
Precision in mid-market valuation
We reject the arbitrary closing dates and "black box" work product of high-volume shops. Our financial due diligence and valuations deliver the absolute operational truth that private equity demands.
Core Capabilities
Timely and meaningful insights into complex business models
We analyze target companies across industrial, healthcare, and business services sectors, uncovering structural risks before capital is committed.
Valuation
Private equity valuations encompass an in-depth analysis of five years of historical financial data alongside a robust three-statement financial model forecast. The future performance of each target company is firmly linked to its business model. We develop thorough revenue and cost forecasts that are tailored to the unique circumstances of each company. Key factors such as headcount, physical capacities, and sources of capital are meticulously evaluated and integrated, resulting in a realistic and reliable projection of the target company's future.
LBO Modeling & Valuation
We specialize in complex private equity valuation including leveraged buyout modeling (LBO.) Transactions structured as LBO's require comprehensive, three statement financial modeling to determine if, not necessarily how, a LBO will result in a self-sustaining successful transaction. This process involves detailed analyses of cash flow projections, assessment of market conditions and the ability of the target to pay-down the sources of debt utilized to fund the transaction. Our team employs robust methodologies and industry best practices to ensure accuracy and reliability in our valuations, ultimately providing our clients with exceptional insights that guide their investment decisions effectively.
Investor Reporting
Investor reporting valuation
Over 350 private equity valuations
Dynamic modeling, cash flows and returns
The Timeline
Our project timelines are based on experience, not understated to secure the engagement
Project Scope
Challenges
Delays
Short-term delays may arise when management and key personnel are offsite due to prior or unexpected commitments.
ERP or other software limitations frequently require different approaches to complete the analysis of a particular area of the business.
PTO, trade conferences, employee outings and family obligations are all real-world commitments that require attention away from the advisory project.
These challenges are often difficult to anticipate because each business operates with a distinct combination of systems, processes, and software integrations.
Timeline development
Factors such as the amount of entities or reporting units, firewalls and foreign exchange significantly impact the scope of a project.
The scope of a particular project is the largest single determinant of the overall timeline.
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In addition, unexpected Challenges and Delays almost always happen.
We believe engagement timelines should be realistic and assume that unexpected challenges and delays will occur.
The Timeline
Valuation - We structure these engagements based on a four-week timeline.
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Two weeks of data collection and management meetings
Two weeks of focused analysis and quantitative meetings.
The last week is dedicated to validation of insights and documentation.
The first two weeks are equivalent to the first four weeks of a Quality of Earnings engagement. Data requests are usually less allowing us quicker entry to focused analysis and management meetings.
Weeks three and four are dedicated to market analysis and confirmation of assumptions.
Week four is spent confirming insights, requesting backup where necessary and documenting our findings.
Secure absolute clarity
Initiate a confidential discussion to feel confident in your next mid-market transaction.