Compatibility

Windows Operating System:

The FAT v4.0 is fully compatible with MS Office Excel 2007, 2010, 2013, 2016, and 365.

Mac Operating System:

Though the FAT was made through Windows, Mac users are still able to use the software by installing the Windows OS on your Mac with Boot Camp Assistant. (For instructions, please refer to the ‘Install Windows 10 on your Mac with Boot Camp Assistant’ guide on the Apple Website.)

Financial Analysis Tool v4.0

  • MS Excel based for ultimate flexibility and most widely recognized navigation.
  • Intuitive – each tab is in order of functional input and output priority. Each tab and cell are colour-coded with specific meaning and all as reflected and instructed in the ‘Usage Notes’ section on the ‘Main’ page of the FAT.
  • Sheets / Tabs include:
    • Initial Input Section:
      • Historical Income Statement Input
      • Revenue Projections Assumptions Input
      • Revenue Projections Input and Analysis
      • Historical Balance Sheet Input
      • Property Valuation and Assessment
      • All Projection Inputs are user selectable to include:
        • Steady Growth
        • No Growth
        • Manual Growth
        • Regression by Revenue
        • Regression by year or
        • Manual Input
      • When updating the historical financials in the FAT, it has the ability automatically drop the most recent year, move the trailing 4 fiscal years back, and allow the user to add the most recent fiscal year to the data input.
    • Output and analytical sections:
      • Stated Balance Sheet Assessments and Analytics
      • Stated Income Historical Statements Assessments and Analytics
      • Schedule of Income Statement Adjustments Assessments and Analytics
      • Detailed Income and adjustments Assessments and Analytics
      • Normalized EBIT, EBITDA, and SDE / DE Assessments and Analytics
      • Summaries of EBIT, EBITDA, and SDE / DE Assessments and Analytics
      • Free Cash Flow to Firm and Free Cash Flow to Equity Assessments and Analytics
      • Projected EBIT, EBITDA, and SDE / DE Assessments and Analytics
      • Growth Analysis Analytics
      • Financial Ratios Analytics
      • Industry Benchmark Analysis and Analytics
      • All assessment and analytical tables are switchable from ‘Percentage of Revenue’ or ‘Grow
Valuation:

By far this is the most comprehensive post-analysis input sheet and its sections include:

  • MPSP / Assessment of Value based on multiple earnings cash flow as user selected including EBIT, EBITDA, and SDE and switchable between Asset and Stock / Share structure considerations
  • Input from 5 historical years and 5 projected with weighting ability for each historical reference, or average amongst user selected historical data
  • Seven ‘User Pre-Set Methodologies’ customizable on the ‘Main’ page and thereafter accessible through drop down menu
  • Ability to include, exclude, or default, as desired pre-set specific Valuation Methods
  • Weighting ability in all Valuation Methods and Approaches used
  • Ability to switch DMD Methods to ‘include’ or ‘exclude’ Inventory and / or PP&E / FF&E
  • Ability to view the specifics of each methodology used in terms of the actual user inputted numbers, calculations and reasoning behind each methods for a clear understanding of each by the not so skilled or experience user, and for better communication with the clients or self- and third party education use
  • Working Capital Calculator using Historical Data (can be yearly, or monthly up to 24 months), or Industry Data, where each selected can be specifically weighted by the user and with the ability to include it or exclude it from the assessment
  • The pre-set Net Working Capital calculation options include the:
    • Simple Method
    • Traditional Method
    • Operating Cycle Method
    • Benchmark Method; and
    • Manual input
  • Naturally, the NWC calculation can be user selected to reference specific fiscal years, or projections, and based on ‘Sales Growth’, ‘Regression’, ‘Percentage of Revenues’, or ‘Manual Input’. In addition, the Asset Data Input can consider Inventory Values at ‘Actuals’ or specific ‘Averages’, and Assets can be assessed at FMV or NBV. 
  • Specific data affecting the DCF Method can be user controlled by choice of Asset Class Depreciation and Amortization, Acquisition Costs, as well as Goodwill.
  • Price allocation, selling or acquisitions costs including commissions, CAPEX, growth types and rates, cost of capital, excess earning growth rates, earnings persistence and including WACC calculations, ROIC, EBITDA, and SDE / DE, financing tax implications, Appraiser’s Analysis Table ratings as well as the use of Michael Porter’s Competitive Analysis ratings are all accessible for user input.
  • The resultant information on this data packed sheet include:
    • Weighted outputs user selectable of ‘Revenue’, ‘EBIT’, ‘EBITDA’, and ‘SDE / DE’ and Extrapolated Multiples thereof
    • Output of each Valuation Methodology and resulting applied weighting and values
    • Chosen Net Working Capital based factors and compared to ‘Transferred NWC’ and resulting anticipated ‘Surplus’ or ‘Deficit’ as at the considered date
    • Financeable Asset Values and related Debt Service
    • Purchase Price Allocations
    • Varying values including ‘Asset Value’, ‘Stock / Share Value’, inclusive or exclusive of ‘normal’, ‘required’, or ‘transferred’ NWC, and / or including or excluding inventory, and all subject to the user selected inputs
Additional Input, Output, and Analytics Sheets:

  • A specific Valuation Methodology sheet follows the ‘Assessment of Value’ sheet (MPSP Input) to highlight all methodologies, inner calculations, and theories behind them
  • The net Working Capital Calculator which is also accessible from the ‘Assessment of Value’ (MPSP Input) sheet
  • The ‘DealStats’ data import sheet allows for 5 separate imports of data segments, and each can be weighted to reflect the subject business model revenue category weighting and highlights the ‘number of observations’ for each, details thereof, and ‘Coefficient of Variation’ (CV) for each array of samplings and related consideration. The Output Multiple can be derived from various considerations including those of ‘Revenue’ as well as ‘Earnings’ (EBIT, EBITDA, SDE / DE). The samplings can be adjusted to relate to the subject company by up to 8 user inputs, and or suggested discounts or premiums to arrive at various ‘Adjusted Implied Multiples’ for the subject company
  • An extended break down sheet follows allowing up to 9 category breakdowns in ‘Sales / Revenues’, ‘Cost of Sales’, ‘General and Administrative’, or ‘Operating’ expenses and more, allowing for real analysis to be performed where a business model has multiple categories of revenues or where one is comparing ‘Internal Financials’ vs. ‘Accountant Prepared’, where the need to consolidate exists.
  • A full Amortization / Depreciation calculator exists in the sheet following the ‘Extended Breakdowns’
  • The Monte Carlo Simulator tab follows and is most useful for larger transaction analytics where modeling the ‘probability of different outcomes’ is desired in a process that cannot easily be predicted due to the intervention of random variables in order to model and understand the ‘impact of risk’, and ‘uncertainty’, in predicting and forecasting models. In essence this is a ‘multiple projection probability simulator’ used in valuations where significant uncertainties exist. 
  • This is then followed by a data output sheet, Cash Flow Output, Balance Sheet Output, and Summary Output tabs.
  • Additional output sheets include ‘Valuation Considered Factors’, ‘Summary of Valuation Methodologies and Outputs’, ‘Seller Closing Balance Sheet’, ‘Buyer Opening Balance Sheet’, ‘Buyer’s Projected Income Statement’, ‘Buyer Projected Earnings’, ‘Buyer’s Projected Cash Flows’ (Both FCF and FCE), ‘Schedules outlying the selected amortization’, ‘Summaries of the DMD and Deal Stats considerations’, ‘Asking Price Multiples’, and followed by the ‘Data Export Tables’ to the reports and marketing materials which are performed via the report button on the ‘Main’ sheet. 
  • Included thereafter are the export property valuation tables and customizable sheets to the individual user.

NOTE:

If the above seems overwhelming, it likely is because the subject matter can be overwhelming, and that is why we have designed this tool to be used from both a basic level, where a user will just do the recasting and MPSP, or Broker’s Opinion of Value, to an advanced assessor or valuator in the M&A world, and everyone else in between.

Once the user is familiar with using the FAT, they will wonder how they got on without it.