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Due Diligence

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Financial Valuation For A Premium Food Company

How our Financial Valuation Modeling solution helped the Investment Committee to make decisions

Overview

A Private Equity firm was conducting an investor due-diligence for a premium food product company that underwent a series of restructuring events. As a part of the due-diligence, PE firm required to complete the financial valuation modeling in a short turnaround period.

PE firm partnered with Merilytics to build bottom-up financial statements (P&L, Balance Sheets and Cash Flows), forecast statements, post restructuring balance sheets for the group of entities, DCF and EV-EBITDA model.

Our Value Addition

  1. Built the proforma Financial statements – P&L, Balance Sheet & Cash Flow Statement
  2. P&L was built using a bottom-up approach using fundamental production and sales drivers. We also built the monthly financial model for two forecast years considering various factors such as sales and production seasonality.
  3. The model also included pre-restructuring Balance Sheet for the individual companies and post-restructuring Balance Sheet for the group of entities

Impact

  1. Quick turnaround times helped the client to make investment decisions using fundamental drivers of the demand
  2. Comparison of our analysis with Financial statements produced by the company and a 3rd party vendor, helped the PE firm validate the financial health of the company and differences in cash flows due to the restructuring events

Results

Financial Statement Analysis
Valuation Modeling
Investment Thesis Validation

Great modeling work that clearly answers a few critical questions we had during diligence.
Vice President – Private Equity Investor 

Intelligent Analytics

Distinctive Solutions

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