Valuation for Mergers and Acquisitions

“Sometimes there is no way for growth other than going into a merger or acquisition”

Mergers and acquisitions (M&A) in general terms refer to the consolidation of companies or assets. M&A can include a number of different transactions, such as mergers, acquisitions, consolidations, tender offers, purchase of assets and management acquisitions. In all cases, two companies are involved.

How can you help me if I am about to enter into an M&A deal?

“Excellence is the evident gradual result of always striving to do better”

Naturally, both sides of an M&A deal will have different ideas about the worth of a target company: Its seller will tend to value the company at as high of a price as possible, while the buyer will try to get the lowest price that he can.

And here comes our role as a professional firm offering valuation services for target companies entailing the following approach;

  • Assist in the preparation of the detailed 3-5 years projections study alongside target company’s management;
  • Review the reasonableness of the underlying assumptions of the cash flow projections;
  • Conducting marketing and feasibility studies to substantiate projections of sales in domestic and export markets if any;
  • Building Up management studies supporting projections related to cost of services provided, marketing cost, operating cost, financing cost, and other costs;
  • Accessing the required financing plans for the target Company’s operations other than equity financing and related financing costs;
  • Estimating the appropriate growth rates and application methods to arrive at these rates.
  • Applying relevant discount rates and illustrating the applied methodology to arrive at this rate and how risk premiums were estimated.
  • At last, we provide in-house training as to how to use these control sheets.

We can also provide monthly visits to make sure that things are still on the right track and/or the required corrective actions in case of deviating out from the planned path.

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