MoneySoft's DealSense® Plus+ Helps Business Buyers Avoid the Winner's Curse
Closing the deal can be sweet for business buyers, but the winner's curse is a bitter fruit. The winner's curse is the economic burden of paying an overly generous price. "The M&A process is set up to get top dollar for the seller. Once the deal is sealed, the buyer is frequently confronted with the reality that the seller has walked away with a large part of the company's future profits," says Robert B. Machiz, President of MoneySoft. (www.moneysoft.com)
(PRWEB) May 6, 2005 -- In order to level the playing field, MoneySoft has
released a new software system called DealSense Plus that was created
specifically for business buyers. Analysis, valuation, pricing, financial
simulation and Free Cash Flow ROI modeling have been synthesized into a single
system. "There are scores of books on how to value and analyze an acquisition,"
says Machiz. "It can take hundreds of hours to digest the concepts in these
books and build a halfway-decent spreadsheet, and then you're the only one in
the organization who can make any sense out it!" By eliminating spreadsheets,
the buyer is free to focus on strategy, planning and the implications of the
numbers.
The valuation component of DealSense Plus was developed with
Practitioners Publishing Company (PPC), a Thomson Company. PPC licensed that
portion of MoneySoft's technology for sale to the CPA and valuation community
under the trade name Business Valuation Specialist™. That same technology is
also published by MoneySoft as Corporate Valuation
Professional™.
DealSense Plus makes fundamental analysis and valuation
more accessible to the buyer. The fair market valuation serves as a baseline
when determining the price to be paid for a company. The simulation model takes
the price, deal terms, debt and equity funding, and assumptions about how the
business will be operated after the acquisition and produces detailed financial
projections. The projections and related analyses provide guidance on the
company’s bottom line, free cash flows, returns to investors and future
health.
A number of built-in sanity checks guide a buyer toward making a
deal that's economically sensible. According to Machiz: "If a buyer decides to
overpay based upon a strategic imperative, it should be a conscious act made
after considering the economic burden being assumed."
MoneySoft, Inc. is
a global leader in valuation and M&A software. Additional information can be
obtained by calling 800-966-7797 or by visiting the company's website at www.moneysoft.com. The company
also publishes The Acquisition MarketPlace® Review, the journal of applied
M&A theory. An online edition is available without charge at www.mergerdigest.com.
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Source : http://www.prweb.com/releases/2005/5/prweb236915.htm