MC

Knowledge Base

Methodology, glossary, and playbooks for separation economics diligence — written for the deal team, not just the model.

Knowledge Base/How DiligenceDesk Calculates
How DiligenceDesk Calculates
3 min read

How the Net Proceeds Bridge Is Calculated

The bridge isn't hand-typed per report — it's derived once from cost driver data so every screen and export agree.

Every cost driver in Separation Economics — HR/People, IT/Technology, Finance, Contracts/Procurement, Revenue Dis-Synergies — carries a low, base, and high estimate and is tagged as either a stranded cost or a dis-synergy. The bridge is built by summing those tags for a given scenario, then applying the scenario's recovery-actions estimate.

  1. Sum every cost driver tagged "stranded" at the scenario's cost case (low/base/high) → Stranded Costs
  2. Sum every cost driver tagged "dis-synergy" at the same cost case → Dis-Synergies
  3. Apply the scenario's recovery-actions estimate — value the deal team can realistically claw back → Recovery Actions
  4. Headline sale price − Stranded Costs − Dis-Synergies + Recovery Actions = True Net Proceeds

Why this matters: Because the bridge is computed rather than typed twice, the Separation Economics overview, the Scenarios tab, and the exported executive report can never quietly disagree with each other the way hand-maintained numbers eventually do.

This is also why adding a new cost driver or updating a range in one place automatically flows through to every bridge, scenario, and report that depends on it.