Understand the strategic question
I framed EBOS as a potential extension of Wesfarmers’ health platform, then assessed why the timing, portfolio fit and operating footprint could support—or weaken—the acquisition thesis.
What I built
A connected acquisition model, not a collection of isolated outputs.
The workbook moved from six years of historical financials to relative valuation, a beta-based cost of capital, five-year DCF, sensitivity ranges, transaction funding and pro-forma risk. The presentation then translated that work into one recommendation.
Build the standalone valuation
I analysed EBOS’s historical financials, estimated beta and WACC, forecast unlevered free cash flow and tested terminal-value assumptions. I then compared the DCF range with trading peers and relevant healthcare transactions.
Test value creation
The case separated distribution, procurement and back-office savings from potential revenue opportunities. This allowed the acquisition premium to be considered alongside the timing, credibility and present value of synergies.
Connect price to financing
I translated the proposed purchase price into sources and uses, pro-forma leverage and an EPS accretion bridge, then considered whether the capital structure left enough capacity for normal operations and downside conditions.
Make risk visible
The recommendation was accompanied by integration, competitive, regulatory, leverage and synergy-delivery risks, with mitigants and the assumptions that would need the closest monitoring.
Present one coherent recommendation
The final presentation brought the strategic narrative, valuation evidence, transaction mechanics and risk analysis into a single decision case rather than treating each model output as a separate answer.
Original case output
A recommendation supported by valuation, funding and risk checks.
- Triangulated value: DCF, trading comparables and precedent transactions were used as cross-checks rather than automatic answers.
- Transaction logic: the acquisition premium was assessed with identified cost and revenue synergies.
- Funding capacity: the financing mix was linked to pro-forma leverage, interest expense and operating cash flow.
- Decision implications: EPS accretion, integration risk and synergy delivery were considered together.
After Wall Street Prep
I plan to return to the model and make the logic harder to challenge.
This project gave me a useful first end-to-end transaction model. After completing the course, I will polish it using the modelling standards and valuation judgement I am now developing.
- Rebuild the operating forecast around clearly sourced segment drivers and scenario cases.
- Revisit beta, capital structure and WACC with a more defensible peer and observation set.
- Tighten comparable-company and precedent-transaction selection, normalisation and outlier treatment.
- Add stronger balance checks, assumption flags, sensitivity tables and an analyst-friendly audit trail.
- Separate recurring synergies, one-off implementation costs and timing so value creation is not overstated.
- Reconcile valuation, accretion, leverage and downside into a clearer decision range.