EVALUATE AN ACQUISITION
Understand the business. Then the deal.
How NEXA would connect commercial diligence, valuation and financing around an acquisition decision.
AN ILLUSTRATIVE BRIEF
Start with the question.
Your firm is considering buying a founder-owned business. The seller’s growth plan is attractive, but customer concentration and the financing structure could change what the business is worth to you.
What we would bring togetherManagement accounts, customer revenue, the proposed price, operating forecasts and indicative financing terms.
HOW NEXA WOULD APPROACH IT
Build the case.
Connect each decision.
- 01
Frame the investment case.
Clarify why you want the business, what you can improve and what you would do with the capital otherwise. Separate the seller’s expectations from the buyer’s return requirements.
- 02
Connect earnings to value.
Examine recurring revenue, customer concentration, working capital and the quality of reported earnings. Carry the supported earnings base into valuation and cash-flow scenarios; keep unverified adjustments visible.
- 03
Connect value to the terms.
Compare purchase price, debt service, equity needs and integration costs together. A valuation only becomes useful when you can see how the proposed structure changes cash, control and downside.
- 04
Challenge the case before commitment.
Test slower growth, a lost customer and delayed integration. Identify which evidence would strengthen the case, which would weaken it, and which price or term changes would matter.
CONNECTING THE DOTS
What changes downstream?
- 01Customer concentration
- 02Revenue downside
- 03Cash available for debt
- 04Financing capacity
- 05Price and equity required
A customer risk is also a financing risk. If a lost contract reduces cash available for debt service, the affordable debt may fall—and the buyer may need more equity, a different price or a different structure.
WHAT YOUR TEAM COULD REVIEW
A connected set
of work products.
- A valuation model with explicit assumptions and sensitivities.
- A diligence agenda focused on questions that could change the deal.
- An investment memorandum connecting the commercial case, terms and open conditions.
TAKE THE CONVERSATION FURTHER
Explore your acquisition workflow.
Walk our team through the opportunity. We’ll discuss the evidence available, the analyses that matter and the scope of a focused evaluation.
Schedule a call with our teamIllustrative workflow, not a completed client engagement. Scope and work products depend on the evidence and agreed evaluation. Your team owns the decision.