Sales Due Dilligence

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May 16, 2021

by a searcher from Purdue University in Houston, TX, USA

I worked on a corporate transaction sale to a private equity group that required intense due diligence on the sales side. I'm wondering how everyone deals with sales projections that could impact valuations? Is this all done in excel?

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Reply by a searcher
from University of Pennsylvania in Dubai - United Arab Emirates
Hello
Whether you use excel or google sheets or numbers (from apple) your counter-parties will expect to get a spreadsheet based model at some point in the process. However that is not your primary issue. What they will focus on are the assumptions underlying the figures in the model whether it is sales volumes, pricing, returns etc. That is where you need to focus your time. if you struggle with modeling this activitiy can be outsourced. However the inputs and the logic have to come from your.
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