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Valuations

There are many times when a company may need to establish the value of a business unit;   prior to acquisition or divestment, before going  public with an IPO, for a minority buyout, etc.  The Winbridge Group, Inc. has conducted numerous valuations for such purposes.

To develop a valuation, Winbridge:

bulletuses an extensive and intensive, internal and external research program to generate an integrated set  of assumptions for the economy, the industry and the business units market share in that industry;  the result is an Optimum, Pessimistic and Most Likely set of projections for the business unit's revenue over the next five years;
bulletuses historical financial performance data of the company to construct a computer based model that generates forecasted cash flow as well as a complete set of proforma financial statements;
bulletexplores and evaluates a range of financial futures with the revenue forecasts and the computer model;
bulletuses a number of techniques, such as the Capital Asset Pricing Model, and the latest relevant transaction data that is available, to develop a valuation based on the discounted cash flows projected for the business under the various deterministic scenarios;  we may also employ a Monte Carlo simulation approach to obtain similar information but with a stochastic process;
bulletcorrelates the valuation results with a number of conventional valuation methodologies including P/E, Book Value, liquidation value, P/EBIT, etc. and reaches a judgment about a reasonable range of values for the business unit.

This analysis and information is provided by Winbridge to management in a form that is appropriate for use with the Board of Directors.

Key Benefits

bulletExperienced professionals who can conduct a rapid evaluation;
bulletThorough and comprehensive process for research and analysis;
bulletWell founded valuation that the Board can rely upon for its opinion.

Capabilities

Professional Team
 
While conducting a Valuation, it is critical to have a team of professionals who have experience in the process; and knowledge of the industry.  Winbridge is composed of a group of professionals who are highly experienced in working with clients on these types of engagements.  Most of our staff have advanced degrees in business, science and/or engineering.   We know the processes that work and the pitfalls.  Our teams are also skilled in a wide range of industries, technologies and/or functions and bring these qualities to the client team.  Some of the industries we cover include instrumentation, chemical manufacturing equipment, machine tools, pumps, valves, controls, precision molded rubber parts, industrial and medical lasers, aerospace/defense systems and components, weighing systems and components, plumbing fixtures, foundry equipment, electronic components, laboratory equipment, etc.  We have expertise in automation, manufacturing systems, chemical manufacturing, lasers, rubber/plastic manufacturing and materials.
 
Due Diligence Process
 
Valuation is usually part of a due diligence process.  The Winbridge Group, Inc. has conducted numerous evaluations of acquisitions in support of our clients.  We become part of the due diligence team and provide a full range of services.  These services include market research to establish the image of the candidate and an indication of its competitive position in its industry.  They also include the skills and knowledge to go into an operation and carefully assess its strengths and weaknesses.  It is this experience that allows us to assume the role of a duel diligence team for our divesting client and perform the pre-due diligence audit.
 
Market Research
 
We have a team of experienced market researchers who are skilled in conducting personal and telephone interviews with high level professionals.  We have found that in most firms, there is missing, critical information that is key to the formulation of Corporate Strategic Plans.  During our workshop process we identify this missing information and then put together a program to obtain it.  Most of the information is available from key industry sources.  We interview these people either over the telephone or in person.   Occasionally, we will conduct broader based interviews using a variety of techniques form Focus Groups, to Mail Surveys to large scale telephone surveys.
 
Financial Modeling
 
Winbridge has extensive experience in the construction of financial models which are used to show the alternative futures of the company.  We use the models, both deterministic and stochastic, to evaluate the alternative financial futures of the company.  The focus is on cash flows, which we discount at a rate determined by the Capital Asset Pricing Model.

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Copyright 2013 The Winbridge Group, Inc.
Last modified: October 25, 2013