VALUATION OF A FAMILY-OWNED CAPITAL GOODS BUSINESS
Our client is a leading family business in the capital goods sector.
We were called in to help the company navigate its way through a constantly changing economic environment as part of an asset transfer.
The challenge at the heart of this valuation assignment was to value the company’s shares, while taking into account the specific features of its business model, as well as developments specific to its sector (procurement, component shortages, etc.).
Group specificity
In the course of our discussions, and thanks to our strategic, financial and operational analysis of the Group, we have been able to identify a historical performance. This performance has been partly influenced by macroeconomic uncertainties, which have tended to produce more or less volatile results from one year to the next. In addition, we noted a recent external growth operation which we had to include in our work to determine the market value of the Group’s shares.
Organisation of the mission
Our objective was clear: to identify the most appropriate valuation methods for its shares, given the Group’s specific characteristics. Our response was to use intrinsic methods and opt for analogical approaches. We determined normative financial aggregates consistent with the Group’s financial projections. The latest developments in the capital goods sector and the instabilities associated with recent macroeconomic conditions have been incorporated into this analysis.
Conclusion
With this approach, our client benefited from a tailored solution. A relevant method in line with best market practice enabled them to obtain an estimate of the market value of their company’s shares. Thanks to our expertise, clients now have a reliable and justified valuation, which enhances the transparency of their financial operations and their decision-making capacity.
TESTIMONIAL – Alexis, Becouze Manager
“Working on this assignment was an opportunity to demonstrate our expertise in business valuation, providing the client with clear and fully justified results, while respecting the constraints of the timetable. We did our utmost to meet their expectations, combining methodological rigour with an understanding of the specific issues related to the sector. We are proud that our work has contributed to their strategic decision-making.”
