Client requested a model to analyze and report data related to a potential acquisition target which would increase their sales footprint by 50%. We were given the underlying acquisition data and the deliverables were outlined.
We prepared a profit and loss template modifying one of the client’s existing documents since it was very close to the prescribed presentation model. We constructed a map to align the general ledger accounts (GL) between the two organizations so that the data could be mapped within the acquiring organization’s profit and loss model and thereby calculate a bid on the business to be acquired. Our model required a series of tables and lookup formulas in order to present the findings.
The resulting model proved to be a highly visible presentation tool that gave executives a meaningful review of historical results, expected synergies, and plan going out two year by location. It helped avoid potentially costly mistakes in over bidding on the business based on a “business as normal” basis, whereby the buyer excluded revenue enhancing benefits, like adding their own lines, adding to the sales force, and lowering costs.