Aleksey Krylov delivered a comprehensive presentation featuring an Excel model illustrating the M&A exit strategy for a venture capital-backed startup. This session, denoted as part 2 in the "Exit Through M&A 101" series conducted in collaboration with Sutton Capital, took place on November 29, 2023, and is available for review at the bottom of this post.
Post by Aleksey Krylov. Photo by Mika Baumeister on Unsplash
Mr. Krylov skillfully demonstrated the Excel spreadsheet modeling encompassing the company's financial projections, capitalization table, and M&A exit waterfall. It is noteworthy that Aleksey Krylov had previously presented on topics including "Exit Through M&A 101," "Financial Modeling & Deal Exit Scenarios," and "Waterfall Calculation Lessons" in association with Sutton Capital.
The link to the press release Aleksey Krylov Returns to Sutton Capital’s Students with Excel Review of the M&A Exit Case Study
M&A Excel Modeling Considerations
A lot of considerations go into M&A modeling. Here are some additional points to consider that were addressed during the presentation:
Scenario Analysis: The scenario analysis is used assess the impact of different valuations on the transaction outcomes. This is a helpful analysis often critical in support of the M&A negotiations.
Regulatory and Compliance Factors: While always important, regulatory and compliance risks need to assessed and incorporated in modeling and decision making, perhaps, using some probabilistic scale (e.g., probability of closing).
Capital Structure: Model different financing structures for the deal, including debt, equity, liquidation preferences combinations. .
Earnouts: If applicable, model any earnout or contingent consideration arrangements. These are additional payments that may be contingent on the target company achieving certain performance metrics post-acquisition.
By incorporating these considerations into M&A modeling, professionals can create a more holistic and realistic representation of the transaction, better preparing stakeholders for the complexities and challenges that may arise throughout the process.
About Aleksey Krylov, FTERA Advisors
Aleksey Krylov served in CFO roles of public and VC-backed private companies. As investor, he contributed to 25+ private equity deals that have deployed approximately $500 million. He has advised 50+ clients on raising $1+ billion in equity in the healthcare, consumer, media, software, energy, and industrial sectors.
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