Corporate Evaluation
& Marketability
Assessment (CEMA)
- WITH ANDREW BAHLMANN
All roads lead to CEMA. Asking the critical questions upfront results in the right decisions being made.
The CEMA process is a comprehensive ‘deep-dive’ into the business and market which takes around 4 months to complete. It has been designed to provide large private and listed companies (pre-tax profit of R75m+ per annum) with an analysis of their business through the eyes of an acquirer. Client performance metrics are compared against the broader market to determine market attractiveness, valuations, market approach strategies and the right acquirers and strategic partners.
The Value of the CEMA Process
Industry Analysis
A comprehensive analysis and understanding of both the macro environment along with how our client’s industry trends will impact a successful transaction and what the deal strategy needs to be.
Market Blueprint Approach
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An in-depth analysis of the financial performance, position and cash flows of our client’s business.
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Market performance analysis and benchmarking of our client’s business against local and international peers and competitors.
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Detailed valuation work.
Growth Strategy
Robust analysis and modelling of our client’s growth strategy. With corresponding financial forecasting to provide valuable insights and audit trails for our target acquirers to confidently make the right investment decisions.
Market Approach Strategy
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Detailed analysis of the M&A market in our client’s industry both locally and internationally.
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Tracking of industry-related transactions and pricing.
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Formulation and execution of which categories of buyers to approach along with targets within each category.
The Questions a CEMA will Answer:
The CEMA analyses current M&A activity and acquisition strategies of local and internal acquirers to determine appetite for our clients’ businesses.
Is there a
market out there?
Is there a market
out there?
What is the
value of my business?
Using Valutico and S&P’s Capital IQ our team determines a range of market valuations based on years of DLI’s market intelligence and experience.
What is the value
of my business?
Is my business
attractive to the
market?
The CEMA evaluation process analyses our client’s businesses through the eyes of an acquirer client
performance metrics are compared against the broader market to determine
attractiveness.
Is my business
attractive to the
market?
When is the
right time to
sell?
Historical trends, investment patterns, synergy strategies and market appetite are all analysed in determining the right strategy to approach the market.
When is the right
time to sell?
On completion, you will have a thorough understanding of the value, risk, timing and acquirer appetite for your business prior to approaching the market.
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