University of Singapore: Remittance Market Analysis and Valuation

This report provides an analysis of the Singaporean remittance market, focusing on the valuation and key financial metrics relevant to a potential acquisition. The analysis begins with an overview of the market and then moves to the valuation, highlighting important factors such as gross profit, cost, and charges. The report uses the number of transactions as a key metric for valuation, considering the flat fee per transaction and transaction volume. The cost is calculated for the remaining months of the year 2018. The report also considers the debt involved in the purchase consideration, including the expected profit for the year 2018. The report aims to provide insights into the financial aspects of the market and the valuation of the company being considered for acquisition. The report also mentions the use of powerpoint presentation to support the analysis.

Running head: THOUGHT PROCESS
Thought Process
Name of the Student:
Name of the University:
Author Note:

THOUGHT PROCESS
Table of Contents
Thought Process:........................................................................................................................3

THOUGHT PROCESS
Thought Process:
The first thought is to analyse the Singaporean market of remittance, which the
company is willing to enter by acquisition. Thus the market is analysed and the key factors of
the market are read.
The valuation requires the calculation of the various metrics, such as the gross profit
and the cost and charges. The cost of for the company are assumed and the assumptions listed
in the power-point presentation. The target is analysed highlighting the significant numbers
which are of importance to the acquirer. The changes in the financials are highlighted which
are of the importance. The profit is calculated and then the various margin or metrics are
calculated. Thus the various important metrics which are of importance to the company is
calculated and also been mentioned in the power-point.
There is no data which would help the valuation of the company with the use of DCF
or by use of NON-DCF measures. Hence the company is valued using the most important
source of revenue, which is the number of transactions. Since the company charges flat $4 for
each transaction. Also the volume is important which is calculated by multiplying the average
volume per transaction with the expected number of transaction. The cost are charged for the
remaining 9 months in the year 2018. The amount of debt is assumed and thus would be part
of the purchase consideration which would include both the expected profit for the year 2018
and the debt which has been taken by the company.