I am interning with a boutique corporate advisory firm in an APAC emerging market when I saw this (peculiar?) incident:
A client came in one morning looking to sell a majority stake in his private company. Being the eager beaver intern, I quickly started to look into the company's financials, research about their target segments, revenue drivers, debt structures etc. and started to build a basic model to value the company. After some elbow grease I produced the standard football field to present to my VP, feeling rather pleased with my analyses.
He didn't even look at it.
Forget excel models, my VP just used a calculator (his phone) to do some simple multiple valuations or even simple mathematical proportions to arrive at a selling price based on the asking premiums of the client, which he found a few investors willing to take up the offer. After some minor tweaks, negotiations legal DD lasting a few months, the deal went through. No questioning projection assumptions, no teasers, no CIMs,....boom, deal done and the company gets paid.
I was just wondering, is this informal process commonplace where you are working? or is there some other background work that i am not aware of? or it it just a practice in emerging markets where these financial transactions are still nascent?