Basic Elements in CER

Section I: Business Proposition

1. Key facts & strategic rationale
2. Economic justification & key risk factors
NPV, IRR, payback
Specific risk: economic, technological,
regulatory, etc.
3. HR implementation plan & key
milestones
Key team members & FTE allocations
Operating targets
Income & cash flow plans
Critical completion dates

Section II: Financials
1. Detailed financial plan supporting
economic justification above
2. Sensitivity analyses for key risks
identified above
Section I: Business Proposition
1. Situation Analysis
2. Strategic rationale
3. Proposed transaction detailed term sheet
4. Base case operating plan
5. Economic justification/ financial summary
6. Risk factors
7. Timeline

Section II: Financials
1. Detailed financial plan supporting economic
justification above
2. Scenario analysis
Rationale for scenarios examined
Specific sensitivity analyses
3. Key financials and sensitivities
Income & cash flow commitments
undertaken (the base case figures) by
division
Best & worst case income and cash flow
figures