Client
An investment banking firm with headquarters in the Middle East.
Opportunity
The client was seeking support in evaluating the pipe business of a global conglomerate based in Hong Kong. The conglomerate carried out operations via two entities in the UAE. SG Analytics' project scope included a merger analysis of the two entities, followed by a valuation across various methodologies.
Solution
SG Analytics understood the client requirements in detail and implemented the following solution:
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Assess the business structure of the two entities, including the management structure, and modeling the business.
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Forecast a 5-year semi-annual model with separate financial statements for each of the two entities and subsequently merge the financials to form a merger model.
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Calculate the synergies and impact on the capital structure of the merger entity.
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Analyze sensitivities on the accretion and dilution versus the premium paid.
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Build out revenue, loan, balance sheet, and fixed asset assumptions and schedules to project the financial statements followed by a DCF analysis.
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Assess company comparables and precedent transactions for a market-based valuation.
The output involved different scenarios (base, bear, bull), sensitivity analysis, football field analysis and key ratios.
Value Delivered
1
SG Analytics enabled the client to better evaluate the deal with a working model showing the merger analysis.
2
The client used SG Analytics' analysis to advise its end client.
