SOLUTIONS / BUY A BUSINESS
Understand the business
before the next commitment.
Model the operating and financing case for a proposed business purchase. Explore the effect of the purchase structure, transition plan and downside assumptions.
01 / THE WORK BEHIND THE MATERIALS
A clear objective.
A connected approach.
For entrepreneurs, acquisition buyers and business owners evaluating a company or a new operating asset.
Establish the operating case
Structure the financial information available from the seller. Distinguish reported results from proposed adjustments and future operating assumptions.
Connect price and financing
Model the purchase consideration, proposed funding, transaction spending and working capital. Reflect the terms supplied for the analysis.
Explore the transition and downside
Compare operating plans, staffing changes and investment after completion. Test weaker trading and changes in payment or funding assumptions.
TURN THE OBJECTIVE INTO A WORKING BRIEF
What needs to be clear
before the next decision.
Connect the business being acquired to the purchase structure and the buyer’s operating plan. Keep historical performance, proposed changes and transaction assumptions distinguishable.
| The question | The work behind it | The useful output |
|---|---|---|
| What is the operating starting point? | Organize available historical financials, recurring costs, customer activity and proposed adjustments. | A documented baseline with unresolved information gaps identified. |
| What is required at completion? | Bring together the purchase price, transaction costs, working capital and agreed funding assumptions. | A sources-and-uses schedule for the acquisition and immediate operating needs. |
| How does the business perform after purchase? | Model the buyer’s operating changes, integration costs and supplied financing terms. | A post-acquisition forecast showing operating cash, funding and repayment timing. |
A USEFUL STARTING POINT
Build the basis for the decision.
Create a clear bridge from the available historical information to the buyer’s forecast. The model supports financial evaluation; the engagement scope states any separate diligence work required.
FOR OUR FIRST CONVERSATION
Three things to clarify.
- Available seller financials and operating information.
- The proposed purchase structure and sources of funding.
- Planned changes to management, costs, investment or commercial activity.
02 / MATERIALS FOR THE NEXT STEP
The right documents.
One consistent basis.
The products follow the project. I can focus on one deliverable or connect several in an agreed scope.
USEFUL INPUTS AFTER OUR FIRST CALL
- Available seller financials and operating information
- Proposed price and transaction structure
- Potential debt and equity terms
- Working capital and investment needs
- Post-acquisition operating and transition plan
ILLUSTRATIVE PROJECT SCENARIO
See the decision
in context.
An entrepreneur evaluates a service company with recurring clients. The model compares the purchase structure, a transition period and a more conservative client-retention case.
Explore the project exampleA FEW PRACTICAL DETAILS
Before we work together.
LET’S MAKE THE NEXT MOVE CLEARER
Let’s make the next
decision clearer.
Three quick questions. Then choose a time to talk with Henry.