Virtas Partners provided support on sell-side Quality of Earnings and financial due diligence for the prospective sale of a business unit as part of a large bankruptcy process.
Client Need
Our client was going through a bankruptcy process at the corporate level, with the sale of a specific business unit as a remedy of the reorganization. They wanted an experienced partner to produce a quality sell-side data book with a focus on quality of earnings and other information that potential buyers would seek with their diligence process to optimize sales proceeds and increase likelihood of a transaction.
Tailored Solutions
- Produced a sell-side diligence deliverable their investment banker could utilize in a marketing process to expedite the sale
- Analyzed the business and financial history to identify one-time and nonrecurring items to present adjusted EBITDA
- Identified key metrics that a buyer would be considering in their diligence and provided analysis and insights into operations
- Provided information regarding working capital and other deal considerations
- Collaborated with existing business unit (BU) management team, restructuring (Rx) advisors, and investment banks
Value to Client
- Developed adjusted EBITDA information for marketing purposes within two weeks
- Completed our assignment within the time constraints of the reorganization process
- Provided an informed view of the business with relevant information to position the best value view of the target
- Enabled bankers and management to quickly address diligence queries, anticipate concerns, and be prepared to competently respond
Capabilities
- Sale process and buyside diligence experience
- Financial and data analysis
- Carve-out financial preparation
- Financial & business operational experience
- Understanding needs and collaborating with management, Rx advisor, and investment banker