Business Valuation Mandate for a Bottled Water Company

Mandate Description

The mandate consisted of a business valuation assignment carried out on behalf of a European agri-food group, as part of the determination of the economic value of a company specialised in the production and distribution of bottled mineral water.

The objective of the assignment was to provide an objective and independent estimate of the company’s value, based on an in-depth financial, operational and sectoral analysis.

Founded several decades ago, the company operates multiple natural mineral water springs and benefits from an extensive distribution network in Europe and international markets.

The valuation formed part of a broader strategic review and asset portfolio management process within the group.

Key Issues

The main challenges of the mandate were to assess the intrinsic value of a heritage brand with a strong reputation.

A key objective was to analyse the cost and margin structure in a sector impacted by rising logistics and energy costs.

The valuation also aimed to measure the company’s real economic profitability based on operating cash flows and growth prospects.

Finally, it was essential to integrate the intangible effects linked to brand strength, customer loyalty and international presence into the overall valuation framework.

Approach and Results

The valuation relied on a combination of recognised approaches.

• A discounted cash flow approach was applied, based on medium-term operational forecasts.
• A listed multiples approach was also used, drawing on a panel of comparable companies listed in Europe and the United States.
• In addition, a transaction multiples approach was implemented using a set of international peers in the bottled beverage sector, with observed EBITDA multiples generally ranging between eight and twelve times depending on brand reputation and operating margins.
• A complementary intangible asset analysis was conducted to estimate the specific contribution of the brand to the company’s overall economic value.

The valuation also incorporated environmental and sustainability considerations specific to the mineral water sector, including natural resource management and evolving consumer expectations.

The analysis resulted in a robust and well-supported valuation range, reflecting market dynamics, margin sensitivity and demand evolution scenarios.

The work highlighted the resilience of the company’s economic model, supported by strong brand recognition and the stability of its institutional and distribution customer base.

The valuation served as a technical reference for internal discussions related to portfolio strategy and capital allocation within the group.