The bread and butter of every investment banker can widely be classfiied into 3 sections:
1) Valuation Methodologies
2) LBOs
3) M&A.
1. Valuation Methodologies
DealGPT handles each valuation method by automatically building, reconciling, and cross-checking the underlying financial logic.
A. Comparable Companies Analysis (Trading Comps)
DealGPT automates the workflow by:
- Identifying the right peer set using sector, size, geography, growth profile, margin profile, and business model similarity.
- Pulling key metrics (revenue, EBITDA, gross margin, operating leverage, FCF conversion).
- Computing valuation multiples (EV/Revenue, EV/EBITDA, P/E, PEG, EV/EBIT).
- Normalizing outliers, removing distorted comps, and adjusting for accounting differences.
- Flagging enterprise-value bridge issues, missing minority interests, pension adjustments, and leases.
Result:
DealGPT produces banker-grade trading comps in seconds, with full audit trails.
B. Precedent Transactions Analysis (Transaction Comps)
DealGPT enhances this process by:
- Parsing M&A databases and filings to find true comparables.
- Identifying deal drivers (control premium, synergy expectations, market cycle).
- Extracting multiples at announcement vs. closing for better accuracy.
- Computing premium paid, deal structure, and implied valuation ranges.
- Highlighting hidden adjustments such as earn-outs, contingent payments, and deferred consideration.
Result:
Full transaction comp tables with commentary explaining why each transaction matters.
C. Discounted Cash Flow Analysis (DCF)
DealGPT handles this by:
- Forecasting revenue, margins, capex, NWC, and free cash flows using scenario modeling.
- Running sensitivity tables for WACC, terminal value, and growth assumptions.
- Applying both Gordon Growth Model and Exit Multiple Method.
- Stress-testing assumptions vs. comparable companies and macro indicators.
- Explaining visually where valuation is most sensitive.
Result:
A DCF that feels like it was built by a VP at 3 a.m., minus the headaches.
D. Leveraged Buyout Analysis (LBO)
DealGPT generates:
- Debt schedules
- Interest accretion
- Cash sweep logic
- Exit leverage scenarios
- Sensitivities for IRR, MOIC, and entry/exit multiples
- Equity returns split by sponsor vs management
It also:
- Checks for unrealistic leverage
- Validates debt covenants
- Runs downside protection analysis
- Optimizes for IRR vs. cash-on-cash
Result:
A fully functioning LBO engine with credit-committee style insights.
2. Leveraged Buyouts (LBOs)
A. Fundamentals Overview
DealGPT maps:
- Entry price
- Leverage capacity
- Cash generation quality
- Capex intensity
- Industry cyclicality
- Management incentives
It outputs a sponsor-style investment narrative.
B. LBO Financing Structure
DealGPT builds:
- Senior secured term loans
- Revolvers
- Unitranche
- Subordinated debt
- Mezzanine
- Preferred equity
- Sponsor equity
It models:
- Cash sweep
- Mandatory amortization
- PIK toggles
- Optional prepayments
- Covenant flexibility analysis
Result:
A fully bank-ready capital structure summary.
3. Mergers & Acquisitions (M&A) Process
DealGPT handles every stage the same way an advisory team does, but with automation and real-time interpretation.
A. Auction Timeline
DealGPT lays out:
- Teasers
- NDAs
- CIM distribution
- Q&A
- Management presentations
- Indications of interest
- Binding bids
- Negotiations
- SPA drafting
It keeps stakeholders aligned through intelligent reminders and auto-generated updates.
B. Valuation in M&A Context
DealGPT blends:
- Comps
- Precedents
- DCF
- Synergy-adjusted valuations
- Control-premium analysis
- Buyer vs seller psychology
- Process dynamics
It produces a unified valuation panel visible to both sides (or private if needed).
How DealGPT Handles the Entire Workflow
Here’s the full summary in one punchy block:
DealGPT is essentially the AI version of an elite analyst, associate, and VP fused into a single system.
It manages every layer of the workflow you mapped:
1. Valuation
Automates comps, precedents, DCF, and LBO with explanations and banker-style commentary.
2. Process Management
Tracks Confidentiality Agreement, CIM, NDAs, IOIs, LOIs, drafts, comments, and negotiation movement in real time.
3. Scenario Analysis
Runs live sensitivities so founders, bankers, and investors can see changing deal outcomes instantly.
4. Financial Modeling
Builds and validates models with the precision of a top-tier investment bank.
5. Deal Negotiation Layer
Simulates counterparty intentions, identifies friction points, and suggests negotiation tactics.
6. Documentation Intelligence
Reads SPA drafts, term sheets, and financial statements and flags risks or inconsistencies.
7. Stakeholder Alignment
Summarizes everything in simple, clear language for decision makers.
8. Real-time Updating
If market conditions shift, DealGPT instantly recalibrates valuation, risk, and leverage capacity.
9. Human-Centric Design
Every step is wrapped in a calming, OpenAI-like interface that hides complexity while showing clarity.
