BUSINESS SITUATION
Our client received a buy-side mandate to support who was looking to acquire an US-based IT services provider to expand in the technology space. The client wanted us to shortlist appropriate targets and create an unsynergetic pro-forma model for selected targets
SGA APPROACH
- Conducted exhaustive search and screening for relevant targets using multiple data sources (S&P CapitalIQ, SourceScrub, Factset, Refinitiv, MergerMarket, and Pitchbook), industry reports, and industry associations.
- Shortlisted and benchmarked a more focused list of companies across various parameters including historical revenue and profitability metrics, revenue breakdown by business line and product, ownership, recurring client revenue by product and Adj. EBITDA, management, and contact information.
- Post selection of appropriate targets based on size and solutions, created detailed profiles indicating the business overview, financials, synergies, the U.S. market for IT services and rationale for acquiring the target.
- The next step included creating pro-forma analysis for presenting the post-acquisition scenario and valuation of the client based on unsynergetic basis for the selected targets.
- Created detailed presentation with charts and the pro-forma model, indicating value addition for the client through acquisition.
ENGAGEMENT
Our initial engagement was to support the client on profiles and valuation comps. The client then engaged us to conduct target screening, model creation, and valuation for buy-side mandate.
BENEFITS & OUTCOME
- High quality and quick turnaround time
- Continuous updates and multiple screenings for finding the right targets.
- Thorough cross verification to targets to give the right valuation as per client needs.
KEY TAKEAWAY
- 60% more client facing time.
- Cost effective research and detailed presentation support.
- Continuous engagement with the client for daily updates.
