Is it takeover time?

Keywords: Aerospace, Business analysis, Valuation

Ever wondered if any of your competitors were worth buying or selling to? A new service by financial analysts, Plimsoll Publishing, is aimed at directors or managers intrigued by the prospect of buying out or selling up their company,without calling in the professionals.

"Taking a 'sneaky' look at the options, the service provides company details and analysis on who may be a good acquisition as well as those that have cash to spend. If there is a company out there that suit your needs, we'll find it",says David Pattison, Acquisitions and Mergers Manager.

The service includes a full valuation of 341 companies in the UK Aerospace industry each with a current and future value. The analysis is then split into two types of company, the "buy" options of those suffering financially and exposed to aggressive predators, and the "sell" options of those with cash to spend and a company desperate to capitalise on its winning position.

Initially, 569 companies in the Aerospace industry were analysed and considered as acquisition prospects or companies healthy and viable to try to sell a company to. This offered a pro-active method of spotting companies that otherwise might have gone unnoticed.

Size of company

Whilst not always the best element to look at, it is by far the most obvious factor to consider when targeting. The options are presented simply (Table I).

Pricing companies

Perhaps a more exciting way to look at an acquisition is what a company is worth and more importantly what it could be worth in the future. The prices produced are subjective and are designed to encourage debate on attractiveness(Table II).

Predicting problems

The Plimsoll method of analysis is designed to predict problems in a company often before the company knows about them. Using a predictive method that looks at 4 years of historical performance, early warning signs are noted and used to tweak performance (Table III).

Predicting future worth

In addition to historical performance, each company is provided with a future forecast, the basis of which is to show how they can be more valuable. One of the three plans is adopted to form the basis of acquisition attractiveness(Table IV).

The service costs £600. A free confidential proposal can be sent to you by calling David Pattison on +44 (0) 1642 626400.

Key: All¼Companies that could be valued

Buy¼Companies considered as acquisition prospects

Sell¼Companies considered as viable to sell a company to.

Table I

Table II

Table III

Table IV

Details available from: Plimsoll Publishing Ltd. Tel: +44 (0) 1642 626400;Fax: +44 (0) 1642 626410; E-mail: plimsoll@dial.pipex.com;Web site: www.plimsoll.co.uk