Business valuation mandate in connection with the determination of the value of the shares of a family industrial company
Business valuation mandate conducted as part of an independent assessment of the economic value of a Swiss company active in the health and construction sectors.
Mandate description
Evaluation mandate carried out on behalf of a Swiss family company specialized in the distribution and installation of sanitary, heating and ventilation equipment.
The mission was initiated following a generational transmission, the new leader wishing to have a objective and independent evaluation before considering a possible sale of the company.
The main objective was to determine the fair economic value of securities, within a methodological framework in accordance with Swiss and international evaluation standards.
Key issues
The main challenges consisted of:
- appreciate the real value of a family-owned company, anchored locally and with recognized expertise;
- identify performance drivers in a market marked by rising production costs and sectoral concentration;
- and ensure consistency between financial valuation, balance sheet structure and growth prospects.
The evaluation mobilized a set of complementary approaches:
- one Substantial method approach, intended to measure the net value of adjusted economic assets;
- one performance-based approach, based on the capitalization of the average operating profitability of the last three years;
- The Practitioners' method, combining a performance-based approach and substantial value;
- one Multiples of transactions approach, based on a panel of comparable transactions in the construction sector;
- And a discounted cash flow (DCF) approach, integrating prudent business and profitability assumptions.
Approach and results
The work made it possible to establish a robust economic value interval, reflecting both the financial fundamentals, the asset structure and the competitive position of the company.
The analysis revealed a solid company, with a loyal customer base and a well-established technical reputation on the French-speaking market.
This evaluation was used to strategic reference for the preparation of the transfer process and the definition of negotiation conditions, guaranteeing a rational and documented approach to value.
The transactions shown include those completed by, or with the involvement of, Hectelion team members in current or previous professional roles. They are presented for illustrative purposes only and do not imply exclusive responsibility by Hectelion.
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The transactions presented were carried out by, with the contribution of, or with the participation of members of the Hectelion team in the context of functions performed currently or previously.