If this story has a painfully familiar ring to it, then it's time to join the thousands of Business Buyers and their Advisors who've added MoneySoft's deal valuation and acquisition analysis software to their toolbox. 

DealSense Plus is a logical, step-by-step guide through the process of financial analysis, business valuation, pricing, structuring and financing acquisitions that make economic sense. At last, you'll be free from the mind-numbing, time-wasting, living-hell that business writers have appropriately called. . . "Spreadsheet-itis."

Imagine what you could do with the time you'll save.

• Focus on business-building strategies and value creation instead of hassling with spreadsheets and writing formulas.
• Organize raw business data into actionable analysis and insightful reports for management, the boardroom, funding sources and prospective investors.
• Optimize purchase price, structure, and terms.
• Create a realistic and feasible financial blueprint for an acquisition.
• Respond quickly as new data becomes available through the negotiating, due diligence and financing processes.
• Standardize valuation and acquisition analysis within your organization so team members can more effectively collaborate on the content and implications of the analysis.  (Some clients use DealSense Plus to supplement or validate their in-house models.)

DealSense Plus provides rock-solid, wall-to-wall acquisition valuation and analysis.

Here's How the Program Works:

The process begins with the input and normalization (recasting) of historic financial statement data.  Normalization helps you draw a more accurate picture of the economic earnings and position of the business being valued or considered for acquisition.

Financial data is then analyzed to determine if the company is gaining, losing or holding financial ground. The analysis includes 34 traditional Business Ratios, Common-Size Statements and financial statement benchmarking using RMA Annual Statement Studies® Data.

DealSense Plus offers much more than traditional ratio analysis: 

• Detailed ratio analysis of both historic and recast financial statements.
• Enhanced analytics such as DuPont Analysis, Z-Score bankruptcy predictor and Sustainable Growth Rate.
• Financial statement benchmarking/comparison using Integra 5-Year Industry data.  Reports are available individually or by subscription.

A set of comprehensive "current-ownership" projections (before synergies and the impact of deal terms & financing) is then prepared in order to estimate the earning potential and anticipated financial position of the business based upon its current trajectory.

Once financial statements have been adjusted, analyzed and projected, the next step is put a value on the company using generally accepted valuation approaches and methods.  In general, a valuation provides guidance and support for a variety of business, tax and legal matters.  With respect to acquisition analysis, a valuation provides a baseline when considering purchase price.

(If you already have a value in mind, you have the option to bypass the valuation and go to the next section where you'll establish price and deal terms.)

 DealSense Plus is an advanced Business Appriasal and Valuation System:

• DealSense Plus includes all of the power and functionality of MoneySoft's advanced Business Valuation System, Corporate Valuation Professional.  So, DealSense Plus is really two programs in one: valuation plus acquisition analysis and reporting.
• Additional valuation approaches and methods necessary to prepare Fair Market Valuations that meet the standards of IRS 59-60 are inlcluded. 
• The Valuation Report created in DealSense Plus incorporates the AICPA's new Statement on Standards for Valuation Services No. 1.
• The valuation procedures in DealSense Plus are designed to conform to the rigid standards of Practitioners Publishing Company's (a Thompson Reuters Company) Guide to Business Valuations authored by Shannon P. Pratt, Jay E. Fishman, J. Clifford Griffith, D. Keith Wilson and Stanton L. Meltzer, recognized leaders in the field of business valuation.
• Optional valuation databases include Done Deals Completed Transactions, Mergerstat Control Premiums & Industry P/E's and BIZCOMPS Small Business Studies.

After considering value, you are ready to establish purchase price, deal terms and estimate Return on Investment based upon Discounted Free Cash Flows.  The system guides you through the process of engineering the deal and automatically calculate the key metrics necessary to:

• Select a Purchase Price.
• Structure Payments to the Seller.
• Include the terms of any Contingency Payments or Earn-Outs.
• Allocate Purchase Price.
• Estimate the Cost of the Transaction and the Amount of Funding Required to Close the Acquisition.
• Determine Cash Required at Closing.
• Summarize Sources of Funding.
• Determine the Cost of Capital and Hurdle Rate.
• Review Return on Investment metrics based upon "Pre-Acquisition" Free Cash Flows.  ROI metrics include: Net Present Value, Profitability Index, Internal Rate of Return with Spread over Hurdle Rate, and Payback Period.

A second set of comprehensive Financial Statement Projections (for up to 10 years) is prepared based upon post-acquisition operating assumptions, proposed transaction structure and terms, and financing activities.

• Set Operating Assumptions for Balance Sheets and Income Statements to prepare Post-Acquisition Financial Statements based upon New Ownership.  You have control over each line item/account.
• Plan and input Capital Expenditures for each Asset Account for each projected period.
• Plan and input Fixed Asset Disposals for each projected period.

Create a financial blueprint to fund the acquisition and meet the funding needs during the term of the projection:

• Secured Credit Analysis indicates the amount of available leverage based upon Asset Values.
• Set the Terms of lines of credit that include: A/R Revolver, Inventory Revolver and Evergreen.
• On-board Purchase Funding Monitor keeps track of the balance of Financing that is required to Fund the Closing and initial working capital.
• Set the Terms for up to 10 Long-Term Debt Funding Instruments.
• Long-Term Funding Debt includes a host of term options to structure a workable financing plan.  Available options include: Direct Reduction or Amortized Repayment, Interest and/or Principal Deferral, and Balloon Payment along with Repayment Term (months) and Interest Rate.
• Convertibles and Warrants (Equity Kickers) can be included as an element for any Long-Term Note.
• Equity Funding options include the sale of new shares, redemption of shares and/or the tender of Buyer or Sponsor Stock along with Convertible Preferred.
• Capital Expenditures can be financed throughout the duration of the post-acquisition projection.
• The Income Tax Worksheet allows you to include any adjustments or credits to federal, state, and local-level income taxes in order to prepare a more accurate tax calculation.

Based upon operating assumptions, deal terms and funding, the following financial statement reports are prepared:

• Sources and Uses of Funds.
• Acquisition Funding Summary.
• Balance Sheet at Closing.
• Projected Income Statements, Balance Sheets, and Statements of Cash Flows.
• Summary of Key Projection Results along with supporting tables for both Depreciation and Debt Amortization.

Post-Acquisition Projections are analyzed to help identify any systemic weaknesses and provide a reality check for complying with loan covenants. Post-Acquisition Projections are further analyzed to estimate the Return on Investment to initial Equity Investors and holders of Convertible Preferred Stock, Convertible Debt and Warrants.  Key measures include:

• Present Value of Discounted Free Cash Flows based upon your Hurdle Rate.
• Net Present Value of Free Cash Flows.
• Other Capital Budgeting calculations include Profitability Index (Present Value of Free Cash Flow divided by Present Value of the Initial Investment), Internal Rate of Return and Payback Period.
• Year-to-year Projected Valuation based upon your selection of an Earnings Multiple.
• IRR Analysis for up to 10 different Equity Groups based upon year of exit and percentage of ownership.
• Cash Flow Summary for Equity Groups.

Create Credible and Effective Reports

An exhaustive analysis and plan that can't be effectively communicated, can be very frustrating for the both analyst and any decision maker trying to wade through the piles of data.

There is a solution that organizes the data into useful information. DealSense Plus includes an on-board financial report builder that links the analysis model with a pre-formatted report/narrative that is logical and easy to understand.

The Financial Report Builder scans thousands of cells in order to organize and present a report that is relevant and documents the methods, procedures and key assumptions that you used.

The Financial Report Builder helps avoid the "paralysis of analysis" and allows you to harness the power of your analysis by turning it into a credible narrative.  Say "Goodbye" to writer's block and the hassles of cutting-and-pasting.  The Financial Report Builder will save you hours and hours.

Combining the "story" around the numbers is a winning formula.

You can master the art of financial analysis, business valuation, pricing, structuring and financing acquisitions that make economic sense.

With the embedded business theory and analytical horsepower of DealSense Plus, deal analysis and planning will be more manageable and productive.  This workhorse will help you reduce stress and the pressures that accompany evaluating and buying a business.  You will get a superior analysis and the time you save can be better used to focus on strategy and value creation.

Install DealSense Plus and put it through its paces. If you can honestly say that our products do not save you time and perform exactly as we say they will, simply let us know within 30 days from the date of purchase and we will gladly issue a full refund.  So, you have nothing to lose…

For more information or to arrange an online demo, call MoneySoft at 800-966-7797 or 602-266-7710.