Buy-Side Valuation Support

CLIENT MANDATE

Welch Capital Partners was engaged to prepare a valuation of a potential acquisition target in a buy-side acquisition mandate. The client, based in Ottawa Ontario, approached Welch Capital Partners help them price the deal and prepare an offer to acquire another complementary company in Western Canada, and required professional and credible valuation and buy-side acquisition advice.

WCP Approach

Welch Capital Partners met with the client on numerous occasions to better understand the acquisition target, the buyer’s investment criteria and desired outcomes, and the potential synergies of the deal. As part of the mandate, it was important to understand how the integration of the buyer and target would generate significant post-acquisition profitability and returns. 

The Welch Capital Partners team mobilized a full team immediately and prepared a financial model that evaluated various forecast scenarios for the target. In addition, the valuation analysis (prepared using the discounted cash flow method) evaluated the buyer’s potential return on investment (ROI) using different forecast assumptions and synergistic benefits. Lastly, Welch Capital Partners sensitized these assumptions to provide the client with flexibility in its pricing negotiations with the target.

Due to the robustness and versatility of Welch Capital Partners’ financial models, the client was able to accelerate the negotiations with the target and provide an offer within a relatively short period of time. The valuation analysis provided by Welch Capital Partners was well received and enabled the parties to focus on key value drivers that affected the purchase price.

The WCP Advantage

Welch Capital Partners leveraged its in-depth expertise in valuations and financial modeling to complete this mandate in a very efficient fashion. Those that prepared the valuation analysis and provided advice to the client had many years of experience working for strategic acquirers and advised previous buy-side client on these matters. Our team’s experience allowed the client to benefit from relevant and practical advice for valuing an acquisition target, and not focus on immaterial or unhelpful areas of analysis and due diligence.