About The FAT

 

THIS IS WHAT THE FAT IS:

The Financial Analysis Tool (FAT) is developed within the Excel environment and is fully compatible with Office XP, 2003, 2007, 2010, and newer versions.

Developed by professionals for professionals, the FAT allows the user to make the most of their time while ensuring quality and accuracy in their work. The FAT also serves as a learning tool with in-depth comments and explanations of the theory behind most concepts, models, choices, inputs, and calculations.

 

THIS IS WHAT THE FAT DOES: 

As a valuation tool, the FAT generates any desired standard or custom reports such as Valuation Reports, Opinions of Value, Financial Analysis Questionnaires, and even populates marketing materials such as the BP, CBR / CBO, CIM, and more. The FAT can be used to analyze historical as well as future financial performance, working capital, ratios, debt structures, deal structures, and much more.

In the valuation process, the FAT provides users with 12 proven and widely accepted valuation methods, using the three broad valuation approaches (Income – Market – Cost). The FAT offers users the flexibility to choose and weigh the different methods based on their relevancy and reasonableness in evaluating a target or subject company. This tool allows the analyst to conduct financial performance analysis including but not limited to Working Capital, Growth, ROIC, WAAC, Comparables, Industry Benchmarks, and more. All of which are visible in both numeric and graphic formats.

One can easily normalize the Financial Statements to explore the intrinsic value of the business.

 

THESE ARE THE BENEFITS AND FEATURES OF THE FAT, AND HOW THEY CAN HELP: 

In addition, the FAT has the function to automatically generate valuation assessment reports and financial analysis reports as well as automatically populate and / or update marketing materials to serve different audiences. Though we have the ability to integrate any report or document of your choice to the FAT, the base documents included in the package are:

  • MPSP or Assessment of Value Report
  • Blind Profile or Teaser (BP)
  • Confidential Business Overview or Review (CBO / CBR)
  • Confidential Information Memorandum (CIM)
  • Confidential Financial Analysis (CFA)
  • Financial Analysis Questionnaire (FAQ)

All of the above reports may be individually customized to further serve the user’s needs, desired branding, or other objectives. Dual branding is also available with our “Custom” version.

The following list entails how the Financial Analysis Tool can help you in the valuation process:

  • Income Statement Normalization
  • Balance Sheet Normalization
  • Historical Cash Flow Analysis
  • Financial Ratio Analysis
  • Cost of Capital Analysis covering WACC and Buildup Method
  • Asking Price and Multiples Analysis
  • Breakdown Analysis for Revenue / COGS / Inventory
  • Key Industry benchmark analysis that allows you to compare the company performance with industry benchmark Seller’s Closing Balance Sheet and Buyer’s Opening Balance Sheet Analysis
  • 12 valuation methodologies with detailed step by step instruction and analysis
  • Five year future projection to help the user construct Pro Forma Income Statements, Balance Sheet and Cash Flow Statements based on revenue, growth pattern, and regression analysis (includes CF, FCFF, FCFE)
  • Monte Carlo Simulation
  • Optional assessments based on Share / Stock sale or Asset sale
  • Adaptable for SDE consideration, EBIT, EBITDA based valuation
  • Automatic generation of marketing material, analysis report and financial analysis questionnaire
  • Flexibility to customize the valuation based on a Buyer’s exit strategies
  • Flexibility to choose and weight years of relevance, valuation methodologies, and value drivers based on the characteristics of the business and industry
  • Flexibility to customize the valuation based on expected amortization schedules, acquisition expense, tax considerations selling expense, and more
  • Financial Statement update function that allows the user to constantly update the valuation with new quarterly financials or fiscal year-end financial updates
  • Buyer’s Financing Tool and Amortization Calculator helps the user forecast future cash flows based on varying financing structures
  • DealStats (old Pratt Stats) tools that allow the user to simply download the data from DealStats Business Database, import it into the FAT, automatically perform regression analysis for the data, calculate summary statistics, adjust for target-vs-benchmark performance variance, and generate valuation multiples for DMDM and GLM

The FAT is in a constant state of iterated improvement and evolution based on user input and updated accepted professional standards and methodologies.

Our financial analysts and technical support team are constantly working to enhance and improve functionality in order to better serve our users and the profession we all work in. These changes since our official launch in 2008 greatly improved the entire FAT platform, giving users unparalleled assessment ability and flexibility to customize their valuations and assessments for various types of clients and transactions.

Import and export functionality affords the user total flexibility of the powerful Excel platform. This includes DealStats (old Pratt Stats) and others as desired import functionality, and much more. A Monte Carlo Analysis feature is also internally developed and available to use.

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