Go Into the Deal Knowing Exactly What You Are Buying
The operational thesis on an acquisition is usually clear. You can see the assets, the production, the contracts, the people. The financial side is where deals get complicated - and where the difference between a good acquisition and a regrettable one usually lives.
We build the financial analysis that gives you total clarity before you commit. The deal model that stress-tests the economics. The financing structure that optimizes your cost of capital. The pro forma that shows what the combined entity looks like. The covenant impact analysis that tells you whether your existing credit facility can handle it. The integration economics that separate real synergies from wishful thinking.
Pattern We See
A PE-backed energy company was evaluating a $40M bolt-on acquisition. The operational thesis was strong, but nobody had stress-tested the financing structure against their existing covenants. Our deal model showed the acquisition would trip a leverage covenant in Q3 under the base case. We restructured the financing mix - more seller paper, less revolver draw - and the deal closed without a covenant waiver. That analysis took a week. Without it, the company would have found out about the covenant issue 6 months after closing.
What This Looks Like
- Acquisition financial modeling and valuation
- Pro forma analysis for the combined entity
- Financing structure and cost of capital optimization
- Covenant impact and credit facility analysis
- Working capital and integration cost modeling
- Synergy identification and validation
- Due diligence financial support