Business valuation mandate as part of the determination of the economic value of a bottled mineral water producer
Business valuation mandate in the context of estimating the real economic value of an international player in the mineral water sector.
Mandate description
Business valuation mandate conducted on behalf of a European agri-food group, as part of the determination of the economic value of a company specialized in the production and distribution of bottled mineral water.
The mission aimed to provide an objective and independent estimate of the value of the business, based on an in-depth financial, operational and sectoral analysis.
The company, founded several decades ago, operates several natural mineral water springs and has a extensive distribution network in Europe and internationally.
The evaluation was part of a process of strategic review And of asset portfolio management of the group.
Key issues
The main challenges consisted of:
- Appreciate the intrinsic value a heritage brand with a strong reputation;
- Analyze the cost and margin structure in a sector marked by rising logistics and energy costs;
- Measure the real economic profitability of the company based on its operating flows and growth prospects;
- and integrate into the valorization of intangible effects linked to brand strength, consumer loyalty and international presence.
The evaluation combined several recognized approaches:
- one discounted cash flow (DCF) approach, based on medium-term operational forecasts;
- one Multiple-stock market approach, based on a sample of comparable companies listed in Europe and the United States;
- one Market multiple approach, based on a panel of international peers in the bottled drinks sector (generally between 8x and 12x EBITDA, according to reputation and operating margin);
- And a complementary analysis by intangible assets, in order to estimate the specific contribution of the brand to the overall economic value.
The assessment also took into account environmental and sustainability issues specific to the mineral water sector, in particular the management of natural resources and the evolution of consumer expectations.
Approach and results
The work made it possible to determine a robust and justified economic value interval, taking into account market dynamics, margin sensitivity and demand evolution scenarios.
The analysis also highlighted the resilience of the economic model of the company, supported by brand recognition and the stability of its institutional and distribution client base.
The evaluation served as technical reference for internal discussions relating to portfolio strategy and the distribution of capital within the group.
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.
Discover our TRACK RECORD
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.