Business valuation memos for M&A teams
Keep the valuation narrative close to the financial analysis and evidence that support it.
SpreadSpaceâ„¢ brings historical financials, spreadsheet analysis and report preparation into one workspace for M&A advisory firms, investment banks and corporate development teams. Develop the analysis and present it in a business valuation memo your reviewers can follow.
Start from your firm's report format, bring in selected tables and charts, and write the conclusions around the work. Source review stays available in the workspace throughout preparation and review.
Start with your firm's valuation report format
Upload an existing PDF or Word memorandum to create a reusable company template. Review the reproduced structure, refine the layout and use it as the starting point for your business valuation reports.
Keep the headings, narrative sections and exhibit arrangement suited to your engagements. Analysts can then work within that shared format as they prepare each new memo.
Build the historical analysis from the documents
Bring private-company audited and reviewed financial statements, internal management accounts and public-company filings into the workspace. Review the reported periods, units and underlying statements before using the figures in the valuation.
Keep the valuation current with earnings reports, quarterly earnings updates and bespoke financial updates supplied for the engagement, alongside 10-Q filings, 8-K earnings releases and 10-K/A amendments. SpreadSpace extracts supported financial statements and schedules from these documents, retaining each reporting period and source for review.
Move from a source-linked historical figure to its supporting document when a reviewer needs context. Keep the reported inputs distinguishable from the adjustments and projections the team develops.
Develop the valuation assumptions in the spreadsheet
Use spreadsheet formulas and projected periods to build the analysis around the historical financials. Functions including NPV, XNPV, IRR and XIRR support analyst-built cash-flow and returns calculations.
The team chooses the valuation methodology, forecasts, discount rates and other assumptions. Explain those choices beside the relevant exhibits so reviewers can understand how the model leads to the conclusion.
Bring tables, charts and narrative into one memo
Add selected financial tables and charts to the report and write the transaction narrative around them. Arrange the exhibits to explain historical performance, the assumptions under review and the team's conclusions.
Source-linked figures can be inspected in the workspace or embedded experience. Reviewers can return to the supporting analysis while reading the memo and ask questions where the evidence is available.
Review the work with the engagement team
Use the shared workspace to review the financial analysis with colleagues. Keep discussions attached to the work and use reusable templates to give the team a consistent structure for subsequent engagements.
Finalization records the report version being issued. If further changes are needed, reopen the report explicitly so the recorded history distinguishes the finalized version from the work that follows.
Deliver the report and retain the working analysis
Render the completed memo as a PDF for delivery while keeping the supporting financial analysis in the workspace. Interactive source review remains available inside SpreadSpace and the embedded experience.
An integration can retrieve memo metadata, render status and a link to the rendered PDF. Teams can also embed the authoring and review workspace in their existing application.
Bring your valuation memo into the workspace
Use a representative financial statement packet and your firm's report template to evaluate the workflow. Review how the historical inputs, analyst assumptions and selected exhibits support the finished memo.
Keep exploring
Public market research
- 10-K, 10-K/A, 10-Q and 8-K extractionFinancial statements, as filed
- Earnings releasesResults as announced, ahead of the filing
- REITs and real estateSegment NOI and FFO from the filings
- Financial statement spreadingStandardized line items across periods
- Portfolio monitoringEach company's statements and filings, every period
M&A advisory
Due diligence
- Financial due diligenceRun quality of earnings and diligence work on traced documents.
- Quality of earnings reportAdjusted EBITDA, every adjustment sourced
- Net working capital and the pegAR and AP aging, net debt and the bridge
- Proof of cashBank activity tied to the books
- Tax-to-book reconciliationThe filed return beside the statements
- Deal diligence for private equityThe seller's numbers from the data room
- Leveraged buyoutsLeverage the target can carry, from its own cash flow
SMB
- SMBTax returns, bank statements, financial statement analysis and global cash flow for small-business lending.
- Tax return underwritingBusiness and personal returns, connected to cash flow
- Bank statement underwritingDeposits, balances and financing activity in context
- Global cash flow and debt serviceBusiness, guarantor and proposed debt in one review
- Financial statement analysisMessy, unstructured borrower data is normalized and spreadable within seconds
Middle Market
- Middle MarketFinancial statements, interim performance, complex borrower groups and debt service in one commercial credit review.
- Financial statement analysisAnnual statements, interim performance and lender adjustments
- Global cash flow and debt serviceRelated businesses, guarantors and proposed debt
- Debt schedules and financingNotes, maturities and payments beside the financials
- Credit memosReviewed spreads and repayment analysis, together
Real Estate
- Real EstateProperty financial statements, adjusted NOI, sponsor support and debt service coverage for commercial real estate lending.
- Property financial statementsOperating statements and rent rolls in one review
- Adjusted NOIProperty income, expenses and lender adjustments
- Sponsor and guarantor cash flowConnect property repayment to sponsor support
- Debt service coverageProperty DSCR with proposed financing
Mortgage
- MortgageBorrower income, self-employment, rental properties and debt-to-income with the original evidence in view.
- Income verificationBorrower income connected to the supplied documents
- Self-employed borrower incomePersonal returns and the business behind the income
- Rental income analysisProperty income and expenses, traced to the source
- Debt-to-income analysisVerified income and monthly obligations together