Proposal for the Acquisition

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Proposal for the Acquisition of
Sample Industries, Inc.

Prepared for:
Timothy Jones, CEO
ABC Actuarial, Inc.

Prepared by:
John Smith, CPA
ACME Valuation Services, LLP
500 North Michigan, Ave.
Chicago, IL 60600

The information contained herein is of a confidential nature and is intended for the exclusive use of the persons or firm for whom it was prepared. Reproduction, publication or dissemination of all or portions hereof may not be made without prior approval from ACME Valuation Services, LLP.

This sample acquisition proposal was generated using Buy-Out Plan® and the Financial Report Builder™. For more information call MoneySoft at (800) 966-7797. Note: this footer is fully customizable.

How This Report Was Generated
This report is a sample of the type of comprehensive acquisition proposal that you can quickly create with MoneySoft’s Buy-Out Plan® and Financial Report Builder™ enhancement. Buy-Out Plan was used to analyze the target company, determine purchase price and terms, and structure a workable financing plan. The Financial Report Builder was then used to automatically create and format the acquisition proposal as a Microsoft Word document!

If this were a “live case,” descriptive text would be added about the company, its markets, management and staffing, capabilities and operations, developing trends, and future prospects of the company. In addition, the rationale for assumptions, potential synergies, changes to be made after the sale, capabilities of the buyer, and a discussion of the strengths, weaknesses, opportunities and threats (risks) involved in the proposed transaction could also be included in the presentation.

An Overview of the Scenario
In this sample case, the buyer is an investment group that has adopted a vertical build-and-hold strategy. The target company is profitable, stable, fits well into the buyer’s strategic portfolio and offers much needed productive capacity. The Sellers are asking for $18,000,000 based upon an asset sale. The Buyer estimates that the Enterprise Value of the company is approximately $16,245,656 and has offered $16,000,000. The target’s assets will be acquired by a newly formed entity that the buyer will control (“NewCo”). This is a friendly transaction. Most of the management of the seller will be retained and have an opportunity acquire an equity stake in NewCo. The acquisition will be funded with the buyer’s stock, senior secured debt, a convertible mezzanine strip, and some seller carryback. After the acquisition, the buyer intends to use the target’s available capacity to manufacture product currently produced by third-party vendors. In addition, the buyer intends to upgrade equipment and install procedures that will improve collections and reduce inventory levels. This Buy-Out Plan report pulls the deal together and provides a thorough bottom-line analysis of the proposed deal.

The names and numbers used in this sample report are fictitious. Any similarity to the names or information of actual companies is strictly coincidental.
A note about the colors used in this sample report:
As you review this sample report, you will notice that there are values inserted directly into narrative paragraphs. All of these value insertions take on the text color of the surrounding text in the paragraph, i.e., black. You will also notice that some of the text is blue, dark red and magenta. The significance of each of these colors is as follows:



Blue is used whenever the Report Builder creates a table that has a fixed width.



Tables with variable widths (dependent upon the number of years/periods selected) are indicated in dark red.



Non-printable comments are indicated in magenta.

This sample acquisition proposal was generated using Buy-Out Plan® and the Financial Report Builder™. For more information call MoneySoft at (800) 966-7797. Note: this footer is fully customizable.

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