A financial model is the most important tool used in the turnaround, restructuring and/or refinancing of a troubled company. Our work with clients almost always requires us to build at least one, sometimes multiple, models.
If your business is early stage, high growth, troubled, restructuring, dependent on assets with limited life or for any other reason unable to reasonably project a constant and stable EBITDA, an EBITDA valuation methodology will likely result in an unsatisfactory result.
Purchasing a business out of insolvency can be extraordinarily profitable and not very risky if structued properly. But it is a unique transaction and, therefore, strategic purchasers are usually not very experienced or comfortable with the process. These tips should help you come out on top.