Business valuation mandate as part of the determination of the economic value of an industrial group
Business valuation mandate conducted on behalf of an international group specialized in the transformation and distribution of technical materials for industrial use.
Mandate description
The mission aimed to determine the real economic value of a French company active in the formulation, transformation and distribution of technical products for the aeronautical, energy and automotive sectors.
The evaluation was part of a internal strategic review, prior to updating the group's financing plan and preparing for future external growth transactions.
Key issues
The main challenges consisted of:
- Measure the consolidated economic performance of a multi-site and multi-country group;
- identify the levers for creating value linked to sectoral diversification;
- and appreciate the resilience of margins in a context of changing production costs and supply chains.
The evaluation mobilized several complementary approaches:
- one discounted cash flow (DCF) approach, based on detailed sectoral activity forecasts;
- one Market multiple approach based on a panel of comparable European industrial companies;
- And a sensitivity analysis on the cost of capital, growth assumptions and consolidated profitability.
Approach and results
The work made it possible to define a consistent and defensible value interval, validated by the financial department, serving as a reference in the framework of the strategic review.
The analysis also made it possible to identify the most profitable activities and to document the differentiating factors of the group: technological innovation, quality of the industrial tool and geographical diversification.
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.