Accuracy

CLIENT SERVICE

CASE STUDIES

Bye side due diligence in the utilities business

Situation

  • A French listed corporation bidding on assets disposed of by another listed group in the concession business
  • A complex target consisting of a number of assets and concession contracts all over Europe, with very specific business models and issues

Our role

 

 

We were in charge of the following:

  • Financial due diligence (review of virtual data room and thorough analysis of the VDD prepared by seller’s advisors)
  • Running the financial models:
    • Conception of a specific financial model for each of the targeted assets, depending on key business drivers
    • Integration into the model of key business drivers assumptions as determined together with our client
    • Integration into the individual models of all accounting and financial due diligence findings
    • Preparation of a consolidated model including accretion / dilution impacts on key buyer’s financial aggregates (sales, EBITDA, EBITDA margin, EBIT, net income group share, ROCE, etc.)
  • Assistance to the preparation of documents presented to the Investment Committee.

 

Outcome

  • Binding offer submitted following the green light received from the Investment Committee

Value added for our client

  • Very good knowledge of the business
  • Perfect integration and interaction of Accuracy team members with client’s operationals when building the financial models
  • Flexible model (i) allowing the use of different key business drivers at contract level but (ii) with standard outputs allowing straight-forward consolidation
  • Ability to run on a real-time basis various bidding scenarios with change in purchased perimeter, providing management with relevant financial information for decision-making