"It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price."

Our transaction services encompass a suite of specialized financial and advisory services that facilitate the smooth execution of mergers, acquisitions, divestitures, and other corporate transactions. We are equipped with a range of skills, including financial due diligence, quality of earnings, valuations, and pricing of net asset value (NAV). Here are several types of transaction services we provide:

Due Diligence

One of the primary functions of transaction services in business valuation is to conduct comprehensive financial due diligence. This involves a meticulous examination of a company's financial records, operations, and potential risks. By analyzing historical financial statements, cash flows, and key performance indicators, transaction services experts can identify potential red flags and assess the accuracy of the company's financial position. The insights gained from financial due diligence help buyers and investors make informed decisions about the fair value of the target company.

Quality of Earnings

The quality of earnings in transaction services refers to the reliability, sustainability, and transparency of a company's reported earnings, offering valuable insights into the true financial performance of the target company. We will play a pivotal role in conducting in-depth analyses of a company's financial statements, revenue by stream, customer lists, and accounting practices to determine the quality of earnings and normalized EBITDA. We scrutinize, inter alia, the revenue recognition policies, shareholders expenses, accruals, and non-recurring items to gauge the accuracy of the financial performance and to identify material adjustments to the target's EBITDA.

Valuation Advisory

We play a crucial role in performing valuation analyses, taking into account factors such as market trends, industry comparable, and the target company's growth prospects. By utilizing a combination of approaches, such as discounted cash flow, comparable company analysis, and precedent transactions, we help arrive at a fair range of valuation for the target in order to facilitate the transaction. 

Pricing of NAV 

We use various methodologies to price the Net Asset Value (NAV) of private equity funds. The NAV represents the fair market value of a company's total assets net of liabilities. Here are some common approaches that we adopt to determine the NAV for the purpose of settling transactions:

1. Asset-Based Approach: it involves calculating the NAV by fair valuing the fund's individual assets and liabilities. The assets are typically valued at their fair market value, replacement cost, or book value. The asset-based approach is commonly used for businesses with significant tangible assets, such as real estate or manufacturing companies.

2. Income Approach: The income approach considers the present value of the company's future income streams or a capitalization of the past normalized income streams. The most common method within this approach is the Discounted Cash Flow (DCF) analysis and capitalized EBTIDA. 

3. Market Approach: The market approach relies on comparing the subject company to similar companies that are publicly traded or have been recently sold. We research comparable companies and transactions using S&P Capital IQ Pro and DealStats to support a well reasoned market-based valuation.