Financial analysis for private equity firms
From the first look at a target to the quarterly portfolio review, the deal team works from the documents, not the summary that came with them.
SpreadSpace™ reads the financial statements, tax returns, bank statements and supporting schedules a seller places in the data room, and the 10-K and 10-Q filings of public peers, and spreads them for the deal team. Every extracted figure keeps a link to the page it came from, so an associate, a partner or the investment committee can open the source behind any number.
Build adjusted EBITDA with the add-backs shown, test the leverage the target can carry, write the investment committee memo in your firm's template and read each portfolio company's statements every period. Work in SpreadSpace or embed the workspace in the deal platform your firm already runs.
Verify the target from the data room
Upload the audited and reviewed financial statements, the business tax returns, the bank statements and the debt schedules the seller provides. SpreadSpace reads the supported statements and schedules and keeps each company, reporting period and stated unit identifiable.
A source-linked figure opens the uploaded document at the highlighted line. When the committee asks where a number came from, the answer is the page.
Build adjusted EBITDA with the add-backs shown
The reported figure and the deal team's view of it stay separate. Analysts choose the add-backs, and the spread shows each one beside the reported line it adjusts, with the period and the supporting document attached.
Lay out management's proposed adjustments and the team's own in the spreadsheet, so the committee can see which earnings number is the seller's and which is yours.
Model the buyout against the target's cash flow
Read debt to EBITDA, net debt to EBITDA, interest coverage and free cash flow conversion off the spread, each one opening into the rows that produce it. Lay the proposed debt service beside the latest year's cash flow for a pro forma coverage view, and build the sources and uses and the returns case in the spreadsheet with IRR and XIRR.
The historical years stand on their own, with no proposed debt on them. The team chooses the leverage, the pricing and the exit assumptions, and the spread keeps the reported basis under every scenario.
Line up the comparables from their filings
Upload the 10-K and 10-Q filings of public peers and the extracted statements take the same presentation as the target's under your firm's chart of accounts. Compare margins, growth and leverage across the set with the reported lines kept behind the mapped figures.
Write the investment committee memo in your template
Upload the memo your committee already reads, as a PDF or a Word document, and SpreadSpace reproduces its structure as a reusable template. Bring the spread, the adjusted EBITDA schedule, the leverage analysis and the comparables into it as exhibits and write the recommendation around them.
Reviewers open a figure in the exhibit and land on its source. Finalizing records the version the committee saw, and reopening it is an explicit, recorded step.
Read the portfolio every period
After the close, each portfolio company's statements and tax returns arrive on their own schedule. SpreadSpace reads each period into one spread under one presentation, period beside period, with the source behind any figure and the measures your team defines in the spreadsheet.
The quarterly update lands in the same template as the committee memo, so the exhibits the committee approved carry through to the ones the firm reports on.
Bring the work into your deal platform
Use the native workspace or embed the review in the deal management system your firm already runs. Documents, spreads, source review and the memo appear inside your application, and an integration can retrieve finalized spreads and memo renders through the API.
Keep exploring
Work together
Review loans
Private equity
M&A advisory
- M&A advisoryWork the sell side and the buy side from the same spread.
- Sell-side advisorySpread the company's numbers before a buyer does.
- Buy-side advisoryTest the seller's adjustments against the data room.
- 10-K and 10-Q extractionBring reported financials into your analysis.
- Business valuation memosWrite valuation memos in your firm's format.
Run the workflow on a recent deal
Bring the data room from a recent deal and the memo your committee reads. Follow one figure from the seller's documents into the adjusted EBITDA schedule, the leverage analysis and the exhibit, and see whether a second reviewer can do the same.