BVX Knowledge Base
BVX Knowledge Base
M&A University

No Solution

When Deal Optimizer™ cannot find an optimal solution that satisfies the needs of all parties to the transaction, it displays No Solution in the display window in the center of the Overview screen. 

Double-click 'No Solution' to display a message box with the following suggestions:

1.  Run Deal Optimizer™ few more times.

2.  If Exit multiple is equal to PM (PM stands for Purchase Multiple), change it to a specific number. Use your best estimate for the exit multiple. Then run Deal Optimizer™ again. 

3.  Lower the exit multiple or lower the Max Exit Multiple and run Deal Optimizer™.

4.  If Gap (Seller) Note is zero or No, change it to Yes and then run Deal Optimizer™. If optimal solution is found, this is an indication that the deal structure needs modifications.

5.  Check all input field and check for typing errors. (Example: Sales are 10000 instead of 1000) 

6.  Input parameters may be unrealistic. Cash Flow consumption is greater than cash flow generation. Specifically check if EBITDA margin is too low, or if sales growth is too high, or if Capital Expenditure is too high, or if balance sheet has high numbers, or if debt repayment period is too small.

7.  If BVX is installed properly (meaning it was giving Best Value for other projects) and if you feel that there should be an optimal solution, then contact