Business valuation mandate in the context of a strategic sale transaction
Business valuation mandate in the context of a capital reorganization operation prior to an industrial transfer.
Mandate description
Business valuation mandate conducted with a historical player in the construction sector in French-speaking Switzerland, active for several decades in the realization of real estate projects, infrastructures and technical buildings.
The mission was carried out as part of a carve-out, prior to a merger-acquisition process conducted later.
This independent evaluation made it possible to determine the economic value of the company, of document key financial aggregates And of prepare the necessary technical elements to the future transmission operation.
Key issues
The main challenges consisted of:
- analyze operational performance of a company with low capital intensity;
- identify structural profitability levers in a sector exposed to the cyclicality of the real estate market;
- and anticipate valuation issues likely to influence future negotiations (contractual structure, project exposure, margins by business segment).
The evaluation was based on several recognized approaches:
- one discounted cash flow (DCF) approach;
- one relative approach based on the multiples observed in the construction sector, calculated on the basis ofEBITDA (generally between 5x and 7x EBITDA depending on size and risk profile);
- And a return value approach, based on the adjusted average EBITDA/EBIT for the last three years.
Approach and results
The work made it possible to determine a value range consistent with industry standards, by integrating the economic perspectives, cycle constraints and operational specificities of the group.
This evaluation was used to technical and strategic reference during preliminary discussions between shareholders and potential partners, and allowedAnticipate the main transaction challenges.
The mission, conducted in a manner independent and distinct from the subsequent transfer process, contributed to secure the thinking of shareholders on the value of their business and to structure the preparation of the M&A mandate.
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.