PRE-DEAL ADVISORY & VALUATION
Understanding Value Before the Deal
Pre-deal advisory and valuation helps businesses, investors and stakeholders assess a potential transaction before making key decisions. The engagement may involve evaluating a business or ownership interest, reviewing relevant financial information, understanding transaction considerations and assessing the factors that influence value. The scope depends on the nature of the opportunity, the purpose of the assignment and the information available.
BEFORE THE TRANSACTION
Understand the value. Assess the opportunity.
A STRUCTURED APPROACH TO PRE-DEAL ADVISORY & VALUATION
Every potential transaction presents different opportunities, risks and considerations.
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A structured assessment of business performance, financial position, market context and transaction objectives can help stakeholders develop a clearer understanding of the opportunity before proceeding.
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Pre-deal advisory and valuation may support acquisition assessments, investment decisions, preliminary negotiations, transaction planning and other corporate requirements.
TRANSACTION REQUIREMENTS
When Is Pre-Deal Advisory & Valuation Required?
Pre-deal advisory and valuation may be useful at different stages of a potential transaction, from the initial assessment of an opportunity to preliminary negotiations and transaction planning. The scope depends on the nature of the proposed deal, the stakeholder's objectives and the information available.
ACQUISITION ASSESSMENT
Assessing a potential acquisition opportunity to understand the business, its financial position and the factors influencing its value.
DEAL FEASIBILITY
Evaluating relevant financial, commercial and transaction considerations to help stakeholders assess the viability of a proposed opportunity.
INVESTMENT EVALUATION
Supporting investment decisions through an assessment of business fundamentals, relevant financial information and value considerations.
NEGOTIATION PREPARATION
Understanding valuation considerations and transaction objectives to support informed discussions between relevant stakeholders.
PRELIMINARY VALUATION
Developing an informed view of potential business or ownership interest value before advancing a transaction.
TRANSACTION PLANNING
Supporting preliminary transaction planning by identifying relevant valuation requirements, information needs and key considerations.
A Better Deal Begins With a Clearer Understanding of Value.
Assessing the opportunity, understanding the underlying business and identifying relevant transaction considerations can help stakeholders make more informed decisions before proceeding.
Our Approach.
A Structured Approach to Pre-Deal Advisory & Valuation
Every transaction begins with a different objective. Our approach is shaped by the nature of the opportunity, the information available and the considerations that matter to the decision-makers involved.
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DEFINE
REVIEW
ASSESS
ADVISE
REPORT
Understand the Requirement
Understand the Opportunity
Evaluate Relevant Considerations
Support Informed Decisions
Communicate the Outcome
Establish the purpose of the engagement, the proposed transaction, the relevant stakeholders and the scope of work.
Review relevant business information, financial performance and the context of the proposed transaction.
Assess value drivers, financial factors, market conditions and transaction-specific considerations within the agreed scope.
Present relevant valuation insights and observations to help stakeholders evaluate the opportunity and consider their next steps.
Document the analysis, key considerations and conclusions in a manner appropriate to the purpose and scope of the engagement.
PRE-DEAL CONSIDERATIONS
Factors That Influence Pre-Deal Valuation
Assessing a potential transaction involves more than looking at historical financial performance. The underlying business, future prospects, market conditions and proposed deal structure all contribute to how an opportunity is evaluated.
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FINANCIAL PERFORMANCE
Historical revenue, profitability, cash flows, financial position and operating performance provide context for assessing the business.
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MARKET & INDUSTRY DYNAMICS
Industry trends, competitive positioning, market demand and broader economic conditions help provide context for the opportunity.
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TRANSACTION STRUCTURE
The proposed transaction terms, ownership interest, consideration and other relevant deal arrangements can influence the assessment.
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GROWTH POTENTIAL
Future prospects, expansion opportunities, business plans and expected performance may influence the assessment of value.
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STRATEGIC FIT
The business's capabilities, market position and potential alignment with the objectives of a prospective investor or acquirer may affect the transaction assessment.
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RISKS & INFORMATION AVAILABILITY
Business uncertainties, key dependencies, information gaps and other relevant risks may affect the scope and conclusions of the assessment.
A Sound Pre-Deal Assessment Looks Beyond the Headline Value
Understanding the business, the opportunity and the terms of a potential transaction helps stakeholders evaluate relevant considerations before deciding how to proceed.
ADVISORY DELIVERABLES
What a Pre-Deal Advisory & Valuation Report Covers
The deliverables are shaped by the transaction, the purpose of the engagement and the information available. The output may communicate relevant business analysis, valuation considerations and observations to support preliminary transaction decisions.
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TRANSACTION & SCOPE
An outline of the proposed transaction, the purpose of the engagement, the scope of work and the relevant information considered.
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VALUATION & DEAL CONSIDERATIONS
Relevant valuation analysis, value drivers, transaction-specific factors and assumptions considered within the agreed scope.
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BUSINESS & FINANCIAL ANALYSIS
An assessment of relevant business fundamentals, financial performance and other factors that inform the evaluation of the opportunity
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CONCLUSION & ADVISORY OBSERVATIONS
A structured presentation of the findings, key considerations and conclusions appropriate to the purpose of the engagement.
Clarity Before Commitment.
A structured assessment helps stakeholders understand the opportunity, evaluate relevant considerations and make more informed decisions before proceeding with a transaction.