A Product of the Investment Banking Group at Virginia Tech

The Leidos Sell-Side Portfolio

Below is a collection of created documents, sheets, and workbooks associated with the ongoing deal simulation. The deal is a simulated sell-side process of the defense contractor, Leidos.

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Deal Timeline

Teaser Created

Junior Analysts build teaser with public business and financial data

Data Room Built

Data Room is created by scraping SEC filings off of BamSEC and Bloomberg, then compiled into folders

Assumptions Created & Financial Statements Forecasted

Using the created data room, financial data is compiled into 3 statements (IS, BS, CFS). Assumptions are then created and used to forecast statements 5 years out into a terminal year

Comparable Companies Found

Companies with a similar industry, market, location, and size are found and compiled with their trading comps in accordance with a tranche system

Weighted Average Cost of Capital Calculated

Using the capital structure of Leidos, a comparable relevered beta, risk-free rate, and market risk premium, among others, the Weighted Average Cost of Capital (WACC) is calculated

Enterprise Value Found Through a Discounted Cash Flow Model

EBIT, taxes, D&A, CapEx, and NWC are forecasted in order to find free cash flows (FCF). These free cash flows are discounted back to present value using the WACC. Terminal Value is then found using both the Exit Multiple Method (EMM) and the Gordon Growth Method (GGM)

Sensitivity Analysis Conducted

Sensitivity tables are built around various data points in order to aid in negotiation

Confidential Information Memorandum Written

Ongoing

Auction Process Started

Coming soon