Valuation

Valuation is key on every company’s agenda in a M&A deal. The buyer and the seller will always need a transparent and robust valuation to support the M&A transaction. Our Valuation & Modelling services help you make decisions confidently, and help you model the impact of key issues. Our team has both the technical skills, industry knowledge and practical deal experience to provide objective and independent Valuation advice. Our approach is to focus management’s attention on many of the key transactional or strategic issues that will have an impact on the Valuation of the target.

The Valuation process begins with an indicative Valuation exercise before the commencement of the due diligence exercise. The deliverable of this exercise is an “initial” Valuation subject to due diligence that forms basis of initial negotiation of the transaction. Our Valuation (initial and final) process involves the following key steps:

  • Validate assumptions of projected financials (internal and external sources)
  • Prepare the Initial Valuation model on a Discounted Cash Flows (DCF) basis
  • Normalize the Valuation based on inputs from the internal teams, external advisors and market research
  • Apply key Valuation methodologies including DCF based Valuation and multiples based Valuation and determine Enterprise Value (EV)
  • Calculate IRR and Payback Period based on a sensitivity analysis
  • Prepare the Final Valuation model after completion of the due diligence process incorporating the impact of due diligence findings and feedback of internal teams and external advisors

We tailor the scope of our business Valuations to our client’s specific needs and the purpose of the engagement. Our Valuation report provides an overview of the company, industry, economy, discusses value drivers, outlines the analysis performed, along with the inputs and assumptions, and incorporates detailed exhibits that support our Valuation conclusion based on internationally accepted Valuation methodologies.