Within complicated and complex M&A transactions or when a group needs to understand the impact of an acquisition or sale of one or more subsidiaries then the Simulation Console could be extremely useful in the following ways:-
- To show “Scenario” analysis (a scenario is a collection of several companies linked by a certain % of ownership). This could show how a certain M&A transaction or re-organisation could impact the entire group.
- To run some “informal” consolidation balance showing part of the group (to identify economical and financial results of those parts of the group if they were stand alone)
- To show what would happen if the target to acquire would be made of one or more companies with whom the group has already business transactions in place. Then we could show the effect of the “intercompany elisions” that are affecting the consolidation process if the M&A transaction takes place.
- We are able to produce calculations for a consolidated analysis only for illustration purposes. Our system is not to be used for tax compliance purposes.
