Diligence & Financial Engineering

Case Study: Two Institutional Investors Contemplate Discrete Merger of Portfolio Companies

The Challenge

Two active competitors required an independent, objective resource to evaluate, diligence, financial engineer and value the qualitative and quantitative merits of a possible merger.

The JMSeas Solution

  • Served as the independent, objective advisor to the contemplated merger.
  • As the sole buffer of sensitive information, JMSeas generated merger analytics without either party being privy to “state secrets.”
  • Developed and delivered a pro-forma merger model that evaluated deal analytics to respective ownership.
  • Identified and quantified initial and ongoing detailed product mix enhancements and suggested line item costs savings.
  • Provided qualitative and quantitative feedback to both ownership groups.

Case Study: High Tech Company Must Prepare Cash Flow Model for Imminent Board Meeting

The Challenge

On the heels of closing an early stage venture round, the recent departure of its CFO and at the request of its board, a high tech company needed a post-money model that accurately quantified monthly cash burn, product mix contributions and timing for positive cash flow generation.

The JMSeas Solution

  • Created a detailed forecast model based on historical information, fragmented analysis from the former CFO and input from executive management.
  • Created the desired model, along with enhancements that offered a longer term, analytical management tool.
  • Trained executive management to be able to sensitize and modify the model for post-engagement analytics.

Case Study: Early Stage Consumer Products Company Needs Help Articulating Its “Ask” to Potential Investors 

The Challenge

An early stage consumer products company has developed a compelling platform to launch a potentially disruptive product line.  Management, however, lacks the financial expertise to articulate the merits of its platform to potential investors.

The JMSeas Solution

  • Transformed the company’s collateral material into a format appropriate for potential investors.
  • Created a detailed forecast model based on management’s previous track record and comparable deal information to best articulate pre and post money valuations, forecasted performance, risks and potential exit scenarios.
  • Helped management team preemptively articulate risks and mitigants for both their benefit, as well as for the benefit of potential investors.