Spin-Off Divestiture Financial Projection Model
User-friendly financial model to project and analyse the financial outcomes of a divestiture transaction involving a spin off
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€89.00
User-friendly financial model to project and analyse the financial outcomes of a divestiture transaction involving the spin off of a subsidiary within a Group.
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The model enables the user to:
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Determine how the sale proceed fund will be used;
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Project the pro-forma opening balance sheet post divestiture;
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Project the financial performance and position (3-statement financial forecast) over a 5-year period including and excluding divestiture transaction;
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Calculate the intrinsic value of the business including and excluding divestiture transaction using the discounted cashflow (DCF) approach.
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Understand transaction details in table and chart format
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Compare financial outcome of business including and excluding divestiture transaction in table and chart format to support decision making process on divestiture transaction.
KEY OUTPUTS
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Projected full financial statements (Income Statement, Balance Sheet and Cash flow Statement) across 5 years presented on a yearly basis for the business including and excluding the divestiture transaction;
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Discounted cash flow valuation using the projected cash flow output including and excluding divestiture transaction
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Ratio Analysis based on projected financial statements
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Summarised tables and charts showing:
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Key transaction impact and details
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Waterfall showing movement in net assets following divestiture transaction
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Key performance metrics and ratio comparison for business including and excluding divestiture transaction including revenue growth, EBITDA, net profit margin, ROE and debt to equity ratios
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Key valuation comparison including and excluding divestiture transaction
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KEY INPUTS
Setup Inputs:
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Names of business
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Name of subsidiary being divested
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Currency;
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Transaction close period;
Financials Inputs:
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Latest P&L and balance sheet actuals for overall Group and subsidiary being divested;
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Projection assumptions for business including and excluding subsidiary being divested which include:
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Forecast revenue;
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Forecast cost of sales;
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Forecast operating expenses including depreciation;
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Fixed asset additions;
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Borrowing additions/repayments;
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Dividend distributions;
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Tax rate and interest rates;
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Debtor and creditor days;
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Inventory percentage of cost of sales;
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Discount rate and terminal growth rate.
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Divestiture Inputs:
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Additional debt raised in spin off entity
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Special dividend from spin off entity
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Spin off transaction fees
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Pro-forma Group opening balance sheet adjustments following divestiture.
MODEL STRUCTURE
The model comprises of 8 tabs split into input ('i_'), calculation ('c_'), output ('o_’) and system tabs. The tabs to be populated by the user are the input tabs which include ‘i_Setup’ for setup assumptions, ‘i_Financials’ for Group / subsidiary actual and projection assumptions and ‘i_Divest Assump’ for the transaction assumptions and pro-forma opening balance sheet adjustments. The calculation tabs takes the user-defined inputs to calculate and produce the projection outputs which are presented in the calculation tabs and ‘o_Dashboard’ tab.
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System tabs include:
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A 'Front Sheet' containing a disclaimer, instructions and contents;
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A checks dashboard containing a summary of checks by tab.
KEY FEATURES
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The model follows good practice financial modelling guidelines and includes instructions, checks and input validations to help ensure input fields are populated accurately;
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The model enables the user to prepare projections for the Group including and excluding divestiture to assess full financial impact of divestiture;
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The model is not password protected and can be modified as required following download;
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The model is reviewed using specialised model audit software to help reduce risk of formula inconsistencies;
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Apart from projecting revenue and costs the model includes the possibility to model receivables and payables, inventory, fixed assets, borrowings, dividends and corporate tax;
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Business names, currency and transaction close date are fully customisable;
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The model included an integrated discounted cash flow valuation for the Group including and excluding divestiture for comparison;
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The model includes a checks dashboard which summarises all the checks included in the various tabs making it easier to identify any errors.