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Case Study

Supporting a Sell-Side Process

Team Size
1 Managing Director, 1 Vice President, 1 Associate
Project Duration
12 weeks

The Situation

A PE-owned national title insurance underwriter required sales-process preparation and related transaction support. Accordion was engaged to take a leadership role alongside the CFO in the sell-side process by preparing key analytical deliverables. The deliverables included: historical financial reporting, financial and operational KPIs, a 5-year financial projection model, loss reserve analysis, and other key analytical materials. These materials and analyses were used to support the equity story and provide data driven answers to key diligence questions posed by potential acquirers.

Services

Sell-Side Readiness

The Execution

  • Served as an extension of the CFO’s office to support a sale by coordinating and responding to requests from investment banks, the executive team, and Sponsor during the preparation process, and to potential buyers during the sales process.
  • Leveraged business intelligence tools to collect and consolidate all data (transactional, operational, and financial) from a variety of production and financial systems.
  • Created a detailed, bottoms-up 5-year financial projection model – down to the segment, geography, product type level – that was used to highlight key business performance value drivers and support the desired valuation.
  • Analyzed the historical performance of the business and prepared financial and operational schedules including:
    • Historical trending income statement and balance sheet.
    • Detailed analysis on revenue (price, volume), operating expenses, and margin by segment/geography.
    • Key financial and operating KPIs (resale vs. refinance orders, agency split, fee per title, closing ratios, etc.) by business line, geography, and product type.
    • Full customer analysis for each business line.
    • Detailed loss reserve analysis that enabled potential buyers to better understand the company’s loss reserve policy.
    • Reconciliation of details of production data to the financial results.
  • Managed the population of the data room, including all supporting documentation and analyses from different departments throughout the firm.

The Results

Accordion developed and transitioned dynamic, robust, and easy-to-update models which supported the equity story and provided potential buyers with better insights on the financial and operational performance of the Company. Our team was able to rapidly scale the Company’s analytical capacity, allowing for a more streamlined sales process.