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Mergers & Acquisitions
Case Study: The Net Sheet
Our firm starts every deal with an internal document called a Net Sheet. This is a worksheet we develop for
our client prior to going to market (see “Exhibit “A” and “Exhibit B”). The Net Sheet demonstrates how we believe
the market will perceive the value of our client’s company (potential purchase price), how they will receive the
money (deal structure), and what they will receive after fees, taxes and any debts they may have to pay as part of the
transaction. In short, the Net Sheet tells what the seller will take home when the deal is finalized.
When we deliver the initial Net Sheet, typically prior to going to market, we advise our client to take it to
their tax and financial advisors to ensure Wyatt Matas & Associates’ estimates of the taxes are correct and that their
advisor believes the net number they will receive will meet the lifestyle the seller has planned. This is especially
important if the owners are at retirement age, as almost 60% of our clients are. We constantly update and share the
Net Sheet with the client throughout the sales process as the negotiations mature. The original Net Sheet is often
fairly close to or lower than the final net number, as we try to be conservative until we get real feedback from the
market. However, there are sometimes surprises when you get into the market that we do not foresee.
Wyatt Matas & Associates had been advising a retiring husband and wife team on the best time to exit their
healthcare company. Wyatt Matas and Associates had been an informal advisor of the couple for several years,
often speaking once or twice a month about strategic issues the company was facing. Timing of going to market was
extremely important for them, as the net proceeds from the sale would be a significant part of their retirement plan.
Due to the interest we were starting to hear from strategic buyers, we upd