When a transaction with effective materials is contemplated, a business plan containing pro forma financial statements demonstrating the expected effect of the proposed transaction on the company's financial viability.  SDGlobe prepares pro forma financial statements for residential & commercial transactions, such as a merger, an acquisition, a new capital investment, or a change in capital structure such as incurrence of new debt or issuance of equity.

A well structured pro forma models the anticipated results of the transaction, with particular emphasis on the projected cash flows, net revenues and taxes. Pro forma figures should be clearly labeled as such and the reason for any deviation from reported past figures clearly explained. Lenders and investors will require such statements to structure or confirm compliance with debt covenants such as debt service reserve coverage and debt to equity ratios.  Many public buyers or investors bypass a professional structured pro forma and rely on a rough report, which is, really, worst than not having any statement as the figures are most likely far off from reality due to discounting.

Regardless of the size or purpose of your investment, SDGlobe will prepare pro forma financial statements according to your needs so that you can make a better decision.