Private Equity-Backed Online Travel Marketplace
Due Diligence Model Build

The Challenge

The client wanted to acquire another business to expand their offering and market share. However, their existing planning tool had limited functionality. It could not consider the acquisition and related financing arrangements required by lenders and the due diligence process, which was due to start in three weeks.

Since the finance team did not have a dedicated FP&A resource, the client required a model that could be easily operated without prior knowledge or training.

The Solution

We first spent time with the financial director to understand the existing business and the target. This was done by analysing the P&L, examining key drivers of profitability, and the related working capital implications. We then assessed the technical expertise within the team to understand which aspects of Excel they were comfortable with, and which should be avoided. 

Finally, we met with their external debt advisors to discuss the requirements of the remaining transaction stakeholders.

The model was designed to avoid the need for any user manuals. We then deployed a three-statement forecast with the functionality to show history and projections for both the individual businesses and the consolidated group, with financing overlays and scenario functionality. The build was carried out with the timing in mind, and the process was completed ahead of schedule, all while keeping in touch with all parties to ensure that the finished product worked for all those involved.

The Outcome

The client completed their acquisition and continued using the model as a flexible planning tool for a changing environment rather than a one-off transactional model. We have since gone on to work with the debt advisors on other projects.

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George Pavlovic ACA
Director, Financial Modelling
Aleksandra Pavlovic FCCA
Director, Financial Modelling

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