DRIVING VALUE

FOR PRIVATE EQUITY

FIRMS
OCTOBER 2023
CONTENTS

About Synexo
Team
Our Value Proposition
Our Experience
Acquisition Process
How we can help
Timeline
Sample scope of work
ABOUT SYNEXO
 We are a forward-thinking technology services firm located in Raleigh,
North Carolina
 With over 20 years of experience of our founders providing
technology and analytics services, we understand the priorities and
needs of private equity firms.
 Our services are designed to create value across the private equity
lifecycle:
 Deal Sourcing & Diligence: We provide analytics and business
insights to identify high-potential targets and conduct rigorous due
diligence.
 Portfolio Optimization: We help portfolio companies leverage
data & technology to drive growth, efficiency, and value creation.
 Exits & Liquidity Events:We support exit prep with data-driven
operational improvements and compelling data narratives for
buyers.
 Our collaborative, metrics-driven approach enables PE firms and their
portfolio companies to outperform the competition through data-
driven decision making and digital innovation.
 With deep expertise across industries, we are a trusted partner for
systematically maximizing the potential of your investments.

This Photo by Unknown Author is licensed under CC BY

TEAM

Eyal Greenberg Uri Katz Nadav Lavy

CEO and Founder Chief Technology Officer Chief Data Advisor
 20+ years of data analytics and  20+ years crafting software from  Serial entrepreneur specializing in
finance consulting experience idea to deployment large scale data architectures and
 Ex-Big 4 (PwC, EY, KPMG) director  Tech leader with proven track cloud native design
 Expert in M&A analytics including record scaling secure, production-  Chief Data Advisor tackling robust
financial and analytical due diligence ready applications data pipelines for clients
for Fortune 100 companies  Committed to fostering talent  Passionate about hang gliding,
 Avid chess player, cook, baker, and through mentorship programs marathon running, and tennis
runner. Live in Cary, North  Enjoys hiking, philosophy, yoga, and  Devoted father of two young
Carolina meditation. Live in Durham, North children. Live in in Tel Aviv, Israel
Carolina
  Deep analytics expertise – With over 20 years of experience conducting
financial modeling and analysis, our team leverages cutting-edge techniques to
deliver actionable insights.
 Objective Diligence - We provide unbiased analysis and data-driven insights
to support acquisition decisions.
 Portfolio Growth - We help drive revenue, profitability, and operational
improvements across portfolios.
 Digital Innovation - We create technology roadmaps to transform businesses
and gain competitive edge.
 Operational Rigor - Our analytics improve efficiency, processes, and
OUR VALUE 
performance management.
Data Monetization - We build capabilities to derive value from data assets
PROPOSITION 
and analytics.
Exit Planning - We conduct data-driven operational and financial
improvements to maximize exit value.
 Executable Insights - Our recommendations translate into clear, measurable
actions to create value.
 Subject Matter Experts - Our team has deep private equity domain
expertise and analytics capabilities.
 Trusted Advisors - We become strategic partners to PE firms and portfolio
company leadership.
 Demonstrable ROI - Our engagements deliver quantifiable impact on
business value and investment returns.
 Here are a few examples of projects we conducted in the past-
OUR EXPERIENCE  Buy Side Diligence - Conducted an in-depth financial and operational due diligence on a manufacturing
company on behalf of a private equity firm looking to acquire them. Our team analyzed 5 years of financial
statements, interviewed management, and assessed growth opportunities and risks. We provided the client with
a comprehensive report assessing the target's financial health, competitive position, and value creation
Over the past two decades, our founders have opportunities. The client successfully acquired the manufacturing company for $125 million.
conducted hundreds of complex financial, M&A, and
 Sell Side Diligence - Supported a private equity firm in the sale of their SaaS portfolio company to a strategic
data analytics consulting projects for clients across acquirer. Our team prepared financial analysis and QofE report, valuation analysis, and due diligence materials.
industries including private equity, fortune 500 We worked closely with the client to develop the equity story.
companies, global banks, automotive, manufacturing,  Deal Analytics - Provided analytical support to a Fortune 500 chemical company assessing a merger
healthcare, pharmaceuticals, and retail. opportunity with a competitor. Our team built a complex financial model analyzing potential synergies, costs,
growth opportunities, and risks. Our insights helped the client determine the ideal deal terms to propose. The
Our specialized teams have performed countless due deal resulted in a transformational merger.
diligence processes, built financial models, designed  Data Analytics Assistance - Worked with a retailer to build a customized sales data analytics platform to
data-driven growth strategies leveraging advanced optimize their marketing, inventory, and pricing strategies. The platform consolidated data from disparate
sources and enabled advanced analytics techniques. Our solution helped the client boost sales by 10% through
analytics, led post-merger integrations, enhanced risk data-driven decision making.
management strategies, built feasibility studies to enter
 Post-Merger Integration Analytics - Following a merger of two retail chains, provided integration support
new markets, prepared carve-out financials, and tracked by developing analytics to optimize their store footprint, maximize synergies, right-size inventory, and
synergies. consolidate supply chains. Our data modeling delivered $50M in cost savings and revenue uplift during the
integration.
These large-scale, high-impact projects showcase our  Business Modeling – Built a dynamic business model for a global engineering firm to analyze expansion into
deep financial, operational, and analytical expertise as new geographic markets and service lines. Our model helped the leadership team size market opportunities,
well as our ability to deliver significant value focused quantify investments required, and assess profitability for the proposed expansion. This supported their 5 -year
strategic growth plan.
on client needs and bottom-line results.
 Data-Driven Growth Strategy - Worked with a private equity portfolio company in the healthcare space to
identify growth opportunities through advanced analytics. Our machine learning models uncovered ways to
Our seasoned management team average 20+ years optimize clinical trial recruitment and patient retention leading to $50M in incremental revenue.
industry experience enabling us to become a trusted
 Data Analytics and Reporting - Engaged by one of the largest electric utility companies in the US to
partner to the world's leading companies for their transform their data and reporting capabilities. Our team implemented advanced analytics and visualization tools
most critical strategic initiatives. to consolidate data from across their operations. We built interactive dashboards and reporting that provided
real-time operational insights on performance, reliability, equipment health, and customer segmentation. This
enabled data-driven decision making and improved outage response time by 15%.
 ACQUISITION PROCESS

1 2 3 4 5 6
Target Evaluation Approach Target Valuation and Offer Due Diligence Deal Structuring Integration
• Assess strategic • Determine • Undertake detailed • Validate financials and • Optimize deal • Finalize transaction
rationale confidential strategy financial modeling projections structure - asset vs documents
• Review target's to approach target • Prepare valuation • Identify risks, liabilities, stock sale • Obtain necessary
products, markets, • Assess acquisition models and sensitivity and contingencies • Negotiate terms and approvals
facilities, management criteria and value analysis • Assess technology, IP, conditions • Develop integration
• Perform preliminary drivers • Submit indicative offer systems • Structure for tax plan
financial analysis • Make initial contact and advance • Review material efficiency • Execute
• Estimate valuation and and assess interest negotiations contracts and • Plan integration communications plan
returns commitments strategy and timeline • Rapidly integrate
• Analyze competitive people, processes,
landscape and market systems
dynamics • Track synergies and
• Perform customer integration progress
calls and site visits
• Evaluate management
team and staff
 HOW WE CAN HELP

Initial Assessment Market Evaluation Pricing Analysis Due Diligence Closing and Integration

Our Support • Assess market sector • Independent market • Develop pricing range • Analyze target's • Manage negotiations
issues projections via valuation methods financials and accounting through successful
• Conduct competitor • Exit considerations • Advise on pricing and policies closing
analysis • Synergy analysis of next steps • Identify key issues • Develop integration plan
• Identify potential deal existing business • Determine acquisition impacting valuation and across all business areas
breakers vehicle and payment deal structure • Monitor integration
• Prepare market sizing timing • Documentation of due progress
and projections diligence process,
detailed due diligence
report
Deliverables • Regulatory knowledge • Understanding the • Valuation analysis • Issues and risk • Closing of transaction
• Diligent market regulatory environment • Tax implications resolution • Post-merger roadmap
assessment • Clear negotiation
• Early identification of strategy
potential deal breakers
Success Understanding industry Identifying potential deal Valuation knowledge Thorough execution and Practical deal experience
Factors M&A landscape breakers early issue identification
 TIMELINE

The following table is a sample timeline for a buy side M&A deal, start to finish-
Week 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22

Phase 1- Preparation
Kick offf meeting
Weekly update call
Understanding strategic goals and investment criteria
Market and investment opportunities research
Rank potential targets and refine list
Present and review initial findings
Roundtable feedback
Present and finalize target list

Phase 2 - Approach Target Companies

Contact potential targets

Discuss feedback with client and refine message for each target
Approach & negotiate confidentiality agreement and agree terms under which buyer will conduct preliminary analysis
Receive & review additional information from targets, determine their level of interest, and discuss valuation range
Meet with target(s)
Issue and negotiate letter(s) of intent

Phase 3 - Negotiations and Closing

Due Diligence and draft and negotiate purchase agreement
Final negotiation, documentation and closing
Distribution of due diligence reports
Diligence Q&A calls and expert meetings with Management

Final Negotiations & Signing

Negotiations and confirmatory due diligence
Signing
SAMPLE SCOPE OF WORK

 Overview - The purpose of this financial due diligence is to evaluate the historical Scope of Procedures
financial performance, quality of earnings, financial position and working capital
requirements of Target Company. The scope will cover the fiscal years ending 1. Business Overview
December 31, 2019 through July 31, 2023 (YTD and LTM). 1. Conduct management interviews to understand business operations, industry dynamics,
strategies, risks and opportunities
 The key objectives are to: 2. Review organization charts, segment/product/geography reporting
3. Analyze key performance metrics and drivers of financial performance
 Understand the business drivers and historical financial performance 4. Assess competitive position, market share and growth outlook
 Assess the quality and sustainability of earnings
 Identify potential downside risks and upside opportunities 2. Historical Financial Analysis
 Analyze working capital requirements and normalized levels 1. Analyze historical income statements, balance sheets, cash flows
 Evaluate accounting methods and compliance with GAAP 2. Review quarterly and annual financial statements
 Assess the impact of the transaction on the combined business 3. Understand accounting policies, procedures, controls and closing process
 Approach 4. Identify key assumptions, estimates and judgments
5. Analyze revenue by product, geography and channel
 Review SEC filings, financial statements, management reports, presentations 6. Analyze gross margins by revenue streams
 Conduct site visits and management interviews 7. Analyze SG&A costs and benchmark against peers
 Analyze financial statements and quality of earnings 8. Analyze capital expenditures and R&D spending
 Review customer and supplier agreements
 Benchmark financial metrics against peers/industry
 Build detailed financial models to assess standalone and combined scenarios
SAMPLE SCOPE OF WORK

3. Quality of Earnings Analysis 6. Standalone Financial Projections

1. Identify and analyze non-recurring and non-operating items 1. Develop detailed financial projection model
2. Review adjustments for inventory, accounts receivable, deferred revenue 2. Tie out projections to historical trends and growth assumptions
3. Analyze capitalized costs and cash flow treatment 3. Stress test key drivers including revenue growth, margins, capex
4. Review bonus accruals, reserves, allowances, contingencies 4. Analyze cash flows, credit stats, returns under different scenarios
5. Analyze impact of new accounting standards (e.g. lease, revenue recognition)
7. Transactional Analysis
6. Review intercompany transactions and transfer pricing policies
7. Analyze sustainability of cost reductions and synergies 1. Obtain detailed transaction-level data for sales, costs, customers, products etc.
2. Build pricing waterfall analysis showing impact of price vs. volume
4. Working Capital Analysis 3. Analyze revenue retention/churn rates by customer segment
1. Analyze historical working capital ratios and drivers 4. Identify key metrics around new, lost, growing, declining customers
2. Review aging schedules for accounts receivable/payable 5. Develop dynamic dashboard visualizing key operating metrics
3. Analyze inventory - levels, turnover, obsolescence reserves
8. Online Reporting Dashboard Hub
4. Review payment terms with major customers and suppliers
5. Develop working capital model and identify potential improvements 1. Develop a dynamic online dashboard visualizing key operating metrics
2. Integrate detailed cube database of financial and operating data
5. Financial Position 3. Provide secure access to dashboard hub for management and advisors
1. Review cash management policies and controls 4. Dashboard to include charts, graphs, pivot tables filtering on key dimensions
2. Analyze debt and capital lease obligations 5. Enable self-service slicing and dicing of data in real-time
3. Review off-balance sheet liabilities and commitments 6. Provide capabilities for data extracts, downloads and API connections
4. Analyze liquidity and funding requirements
9. Deliverables
5. Review fixed asset register and capital expenditure program
6. Analyze pension, benefits and employee programs 1. Comprehensive report summarizing business overview, historical financial analysis, quality
of earnings assessment, working capital analysis and transaction modeling
2. Financial model with historical financial statements, projections, combination scenarios and
sensitivity analysis
3. Access to project team for follow-up analysis and Q&A
 The information contained in this presentation is provided by Synexo LLC solely for general information purposes. This
presentation may contain forward-looking statements and projections. All statements other than statements of historical fact
are forward-looking statements (including words such as "believe," "estimate," "anticipate," "may," "will," "should," and
"expect"). Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give
no assurance that such expectations will prove to be correct. Various factors could cause actual results or performance to
differ materially from those discussed in such forward-looking statements.

This presentation is not intended to provide tax, legal, investment or accounting advice. Unless otherwise specified, Synexo
LLC does not undertake to update or advise of changes to the information in this presentation. No representation or
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this presentation. In no event will Synexo LLC be liable for any damages including, without limitation, indirect or consequential
+1 919 473 3496 damages, arising out of or in connection with the use of this presentation.

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