A private company with a pre-money valuation of over $1 billion more than doubled its value in less than one year through acquisitions. The Company is planning for an IPO in the near future.

The Challenge

  • Management was using multiple valuation providers and was looking for a trusted team to help with valuation analyses and facilitate the IPO process
  • Management was overwhelmed trying to manage multiple concurrent acquisitions in 2021. They were struggling to collect the necessary information to perform the purchase price allocation analyses
  • Some acquired companies did not have useable historical financial statements or projections
  • Due to the rapid expansion of the Company, Management’s requests were often extremely time sensitive
  • The data provided by Management was adjusted repeatedly, requiring numerous updates in a short period of time
  • Much of the data provided by Management was in formats that made it cumbersome to process
  • The Company changed the team member in charge of the valuations multiple times, resulting in new Management contacts unfamiliar with the valuation process

The Solution

  • WM’s valuation team built a trusting relationship with Management through effective communication and timely, high-quality work
  • Shared the task of collecting information with the Company’s finance team. Reached out to each newly acquired company directly to obtain the information required for the purchase price allocation analysis
  • Worked with the Company‘s finance team to forecast financial statements for each acquired company through the analysis of historical financial statements, comparable public companies and our experience with other transactions
  • Always delivered work product on time regardless of the deadline or situation
  • Worked closely with new Management team members and provided timely answers to their questions to help familiarize them with the valuation process

The Result

WM’s valuation team was engaged as the primary valuation consultant for the Company. WM conducted purchase price allocation analyses for more than 50 transactions in 2021 and subsequently has assisted with the Company’s 409a analysis, lease rate analysis, and other valuation requests.