The situation
- To assist the client to establish the appropriate value of the
company and hence to inform the bid price
What we did
- Undertook a detailed review of operating cost and capital
expenditure projections and, in particular, the forecasting
assumptions used in making those projections. Carried out
sensitivity analysis on those projections by varying the main
assumptions. Provided advice on the risks and potential up-side
benefits and helped to quantify these in terms of an overall value
model.
- Examined contractual arrangements to establish the impact of
risk and reward mechanisms on the overall value of the
business
- Participated in meetings with the vendor's agents as part of
the due diligence process to gain additional information required
to inform the bid
Client benefits
- The client gained greater insight and quantification of the
likely range of value outcomes to give greater confidence in
formulating its bid price
