M&A Club Mississauga June Meeting
Thursday, June 25th, 2020 from 12:00 pm to 1:00 pm (EST)
Speaker: Rob Hong, Co-Founder & CEO, Sapling Financial Consultants Inc.
Topic: M&A Stress Testing through the Current Market Climate
The COVID-19 crisis is having an unprecedented impact on the economics and finances of companies across all industries. Businesses are experiencing drastic declines in revenues, and many have initiated mass layoffs as a result. The stock market is also down from highs and arguably should be down further.
For buyers, this situation represents a unique opportunity. After all, chaos rewards those who do their homework.
Most strategic buyers value companies by applying a multiple to forward/sustainable EBITDA/Revenues. While multiples are arguably going sideways to slightly down, forward measures of earnings are drastically down. For those strategic buyers that invest in detailed analysis and modelling, they may be able to cut through depressed earnings forecasts to see not only a restoration to normal, but possibly new opportunities as well. This conviction can lead them to make offers that beat out the competition based on value creation that is defensible, while ensuring the equity and debt support to make it happen.
This webinar presented by Sapling Financial Consultants will cover best practices and requirements for using financial models to see value through the COVID crisis. It will examine how to model various scenarios to show the impact on value, as well as equity and debt requirements, including:
- Management’s base case
- Extended shut downs
- Faster/slower recovery
- Retooling and other opportunities
A robust model template will also be included, which will be distributed for free to all participants.