Finance Case Study Assignment Help Solutions
Assignment Details:-
- Topic: Case Study
- Document Type: Assignment help (any type)
- Subject: Finance
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CASE ASSIGNMENT
Background
The case assignment is about the financial performance of a software company called On Guard (https://www.onguard.com/nl/). On Guard was a portfolio company of Pride Capital Partners from 2014 to 2020 and based in Amsterdam, after which it got sold to Visma. On Guard has a recurring and scalable business model. The company is founded in 1993 and provides credit management software.
Typically, a software company generates revenue from the sale of Licenses, Maintenance & Support and/or Consultancy.
Software licenses can be sold in two ways:
- One-off license; software is sold to the customer for 100 (one-off) which is followed by an annual fee of 20 (for Maintenance & Support)
- Subscription; the customer pays an annual fee of 50, which includes Maintenance & Support
Generally, the sale of one-off license leads to recurring revenue regarding Maintenance & Support (the aforementioned 20%).
Revenues generated through a subscription model is fully recurring. In this case the 50 is 100% recurring revenue.
On Guard has changed its business model from one-off licenses to a subscription model. Through the course of 2020 and 2021 the company sold both one-off licenses and subscriptions. As of 2022, only subscription licenses are sold by the company (no more one-off licenses). The change of this business model has no impact on the Consultancy revenue.
Assignment
The assignment consists of the following:
- Make a budget for 2022 and forecasts for 2023 to 2025 (income statement and balance sheet). For more information, please see the case assignment in Excel
- Valuate the company based on a market multiple analysis. The multiples can be derived from publicly available financial information of several stock listed software companies
- Make calculations regarding a mezzanine loan (repayment scheme and expected return)
- Alongside the outcome of your financials, create a market overview for the credit management industry. This should include the following
- A brief explanation on the credit management industry.
- Who are the direct competitors of OnGuard
- Which companies could be possible acquisition candidates and why?
Assignment A, B and C can be made in the attached Excel file. In this file we have provided the main assumptions (development of revenue, costs, etc.), you will need to complete the assignment.
During your presentation of the outcome we will pay attention to, amongst others:
- Are you capable of making forecasts based on general assumptions and are you able to link the income statement to the balance sheet?
- How well do you understand the business model and are you able to ‘translate’ this into numbers?
- Are you able to create a clear market overview including corresponding market insights?
You can use everything and everyone you want when working on this assignment (college material, Google, Wikipedia, etc.), as this is also allowed in ‘real life’…
For REF… Use: #getanswers2002255