Case Study: Conducted financial and operational due diligence on a technology led, energy retailer to provide assurance to support our client's proposed $20m investment.

Ross Bern - 11/01/2024

Background

Clyde Ventures were approached by a global Technology provider to undertake financial and operational due diligence on a prospective investment target. Over a two week engagement we were able to provide the necessary assurance and recommended risk mitigation actions to enable the client to proceed with their investment by:

• Creating cash flow models and developing various scenarios to stress test the seller's assumptions
• Analysing the company's management accounts and forecasts to produce financial performance metrics
• Critiquing the viability of the business model and the transferability of the associated Technology across different continents
• Conducting peer group analysis and reviewed operational performance against industry benchmarks
• Challenging the current hedging strategies and proposing a number of interventions to mitigate investment risk
• Critiquing the validity of the seller's customer unit economics and lifetime value projections
• Ultimately producing a company valuation and a clear recommendation to enable the client to proceed with their investment