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The Process

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Date:
Analyst:
Client / Target:
Buyer / Acquirer:

1. Executive Summary

Provide a concise overview of the buyer, their relevance to the transaction, and the recommendation outcome.

  • Buyer Type: [Strategic / Financial / Individual / Family Office / PE Group]
  • Transaction Objective: [Acquisition / Merger / Investment / Minority Stake]
  • Fit Summary: [Strong / Moderate / Weak]
  • Recommendation: [Proceed / Further Review / Not Recommended]

2. Buyer Overview

Detail the buyer’s background, structure, and operational scope.

  • Legal Name:
  • Headquarters Location:
  • Founded:
  • Ownership Structure: [Public / Private / Subsidiary / Fund-backed]
  • Key Executives: [List Names and Titles]
  • Business Description:
    • Core business model and markets served
    • Recent performance highlights
    • Strategic direction and acquisition history

3. Financial Profile

Provide financial strength and acquisition capacity.

Metric FY2023 FY2022 FY2021 Notes
Revenue $ $ $
EBITDA $ $ $
Net Income $ $ $
Debt / EBITDA
Liquidity (Cash & Equivalents)
Credit Rating / Bank References

Observations:

  • Assess financial stability, leverage, and acquisition funding capacity.
  • Note any recent financing rounds or divestitures that may impact transaction readiness.

4. Strategic Fit Analysis

Evaluate how the buyer aligns with the target’s sector, operations, and value proposition.

Factor Evaluation Comments
Market / Sector Alignment
Product / Service Synergies
Geographic Overlap
Cultural / Leadership Compatibility
Acquisition History

Summary:

  • Highlight integration opportunities and strategic rationale.
  • Discuss any potential conflicts (e.g., overlapping clients or competitive products).

5. Transaction Readiness

Assess buyer’s ability and intent to complete a transaction.

Criteria Rating Notes
Deal Experience High / Medium / Low
Management Commitment High / Medium / Low
Financing Certainty High / Medium / Low
Speed to Close High / Medium / Low
Due Diligence Responsiveness High / Medium / Low

6. Risk Assessment

Identify potential issues that could affect deal success.

  • Operational Risks: [Integration complexity, cultural mismatch, regulatory exposure]
  • Financial Risks: [Over-leverage, uncertain funding, market volatility]
  • Reputation Risks: [Litigation, ethics concerns, public perception]
  • Execution Risks: [Deal fatigue, management bandwidth, approval bottlenecks]

7. Conclusion and Recommendation

Summarize the findings and proposed course of action.

  • Overall Buyer Rating: [A / B / C / D]
  • Transaction Feasibility: [Strong / Moderate / Low]
  • Recommended Next Step:
    • Proceed to next phase of discussions
    • Request additional diligence materials
    • Discontinue engagement

8. Appendices

  • Financial statements (summary extracts)
  • News articles and acquisition announcements
  • Management bios
  • Comparable transactions

Merit Investment Bank as a leading boutique investment bank is focused on entrepreneurial middle-market companies. Merit Investment Bank Executes sell-side M&A, buy-side M&A, and capital advisory services, debt and equity capital raises, corporate finance, and valuation services.

Securities offered through Finalis Securities LLC Member FINRA/SIPC. Merit Investment Bank and Finalis Securities LLC are separate, unaffiliated entities.

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