BUSINESS SITUATION
Our client received a buy-side mandate to support a client looking to acquire a US-based IT services provider to expand in the technology domain. The client enlisted our expertise to streamline target selection and develop an unsynergetic pro forma model for the chosen targets.
SGA APPROACH
- Conducted an exhaustive search and screening for relevant targets using multiple data sources (S&P CapitalIQ, UDU, 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 US market for IT services, and rationale for acquiring the target
- The next step included creating a pro-forma analysis for presenting the post-acquisition scenario and client valuation based on an unsynergetic basis for the selected targets
- Created a detailed presentation with charts and the pro-forma model, indicating value addition for the client through acquisition
ENGAGEMENT
Initially, SGA assisted the client by conducting target screening and crafting profiles for shortlisted targets. Subsequently, the client extended our engagement to include creating a pro-forma analysis. This analysis aimed to present the post-acquisition scenario and provide a valuation for the client, based on an unsynergetic basis, specifically tailored to the selected targets.
BENEFITS & OUTCOME
- Exceptional quality with a swift turnaround time
- Continuous engagement with the client for daily updates
- Screenings to pinpoint the most suitable targets
- Stringent cross-verification of targets, guaranteeing precise valuations tailored to client specifications
KEY TAKEAWAYS
- 45% increase in productivity
- Integration of AI tools to enhance the efficiency of target identification
- Optimized workflow processes to minimize bottlenecks and maximize overall productivity
- Strategic resource allocation to ensure optimal utilization and effectiveness
