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M&A Valuation

By April 6, 2022Insights

The secured lender to a mobile banking application company engaged MCA Financial Group to verify the borrower’s Enterprise Value by performing a valuation analysis of the business. The company was headquartered in South America and generated annual revenue of $28MM.

MCA’s team consulted with stakeholders, determined the scope and timing of the valuation, and launched into a thorough and focused assessment of the company’s industry, business model, and financial data. MCA interviewed management and investigated industry-specific M&A transactions, competitors, and financial metrics. Probing the accuracy and reliability of management’s internal forecast and the company’s performance, MCA developed a three-step valuation model based on a discounted cash flow and two market approaches.

MCA’s comprehensive valuation report established the lender’s loan balance was adequately secured by the borrower’s Enterprise Value, providing for future economic resilience.