Valuation Model Agent
Builds and stress-tests DCF and trading/transaction valuation models.
Constructs the DCF (projections, WACC, terminal value), reconciles it against the comps and precedent ranges, and runs the sensitivities the deal committee will ask for. Checks its own footings as it builds.
Authority
Recommend for approval
Team role
Provides specialist analysis
Handoffs
Named collaborators
The role
What it owns and where its authority ends
Desk
M&A Advisory
Desk workflow
Origination, then valuation (comps, precedents, DCF), then pitch, diligence, negotiation and close. Specialist agents build the comps, models and diligence; the accountable coverage officer owns the relationship and the accountable deal committee owns the number.
Collaboration
Works within a defined desk workflow
Decision boundary
An accountable reviewer commits the decision or action.
Systems and capabilities involved
Modeling sandbox (spreadsheet engine)
Market data (rates, betas, estimates)
Comps / precedent set
pulls live ranges from the comps agent
Oversight re-derivation channel
independent re-derivation as a check
Handoffs
What this role gives and receives
Capabilities offered
The handoffs name the next owner or specialist and the work that moves between them.
Handoff to
Receives from
Context
What the role needs to do the work
- Current work
- Driver assumptions, the projection build, and the sensitivity grid.
- Prior interactions
- Prior models for the same target / sector and their accepted assumptions.
- Policies and reference
- WACC conventions, terminal-value methods, sector margin norms.
- Working method
- Model-build playbooks and the desk's house assumptions.
Illustrative workflow
How the work moves
Starting point
Valuation needed for the industrials target ahead of a board pitch.
- 01
Build a 5-year projection from filings and management guidance.
- 02
Derive WACC; compute terminal value two ways and reconcile.
- 03
Run sensitivities on growth, margin and discount rate.
- 04
Reconcile the DCF range against the comps agent's multiples.
Result
A footed DCF with a football-field summary and a sensitivity grid handed to the pitch agent; assumptions flagged for an oversight-agent re-derivation check.
Checks and boundaries
What must be tested or reviewed
- 01Self-audit pass: every formula traces to a stated assumption; circularity flagged.
- 02Cross-check guardrail: DCF output must reconcile to comps/precedent range or explain the gap.
- 03An oversight agent independently re-derives the valuation as a check before any number reaches the client deck.
Human authority
An accountable reviewer commits the decision or action.
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