Our depth of experience in transaction advisory and business valuation are invaluable in the acquisition process. Decosimo provides the following services as part of our buy-side representation:
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Preliminary
Valuation – The first step in buy-side representation begins
with a preliminary estimate of the target's value.
Obviously our expertise in business valuation plays a crucial role
in this first step.
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Financial
Forecasts and Feasibility – Our work in buy-side
representation typically begins with forecasting the future cash
flows based on management’s assumptions and a new capital
structure. Our work in preparing these detailed forecasts provides
objective insight as to whether or not the price is feasible.
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Due
Diligence – With our background in audit and tax and a wide range
of experience, we prepare in-depth due diligence to look behind the
historical operation results and thus determine if new operation
assumptions are feasible. The results of our work feed back into the
financial forecasts.
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Preparation
of Financing Memorandum – The information on the target and
the industry in which the target operates gained in our preparation
of the financial forecast and due diligence serves as the basis for
our preparation of the financial memorandum. These memorandums contain
important operational information that lends credence that the price
to be paid for the target can be justified.
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Arranging Debt and Equity Financing – The memorandum serves as the
basis for obtaining debt and equity to finance the transaction. No one
better understands and communicates this information than those who
prepared the forecast. Moreover, we can prove the assumptions through
due diligence. We work shoulder to shoulder with the buyer to obtain
the financing.
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Negotiating the Transaction – With our depth of operational knowledge,
understanding of business value, and knowledge of the financing ability
of the operations, we help our client negotiate the purchase price,
terms of the acquisition, and the financing to be put in place.