Client Context
The business was at a stage where it needed a realistic and defensible valuation to engage with potential investors. Financials included a mix of operational expenses and non-core items that required adjustment before a reliable view of performance could be established.
Problem & Objective
The key challenge was to normalise financials and build a valuation framework that reflected the true operating performance of the business. There was also a need to clearly present assumptions and risks in a way that investors could understand and interrogate — particularly in a private equity context.
Approach
We developed a valuation model combining multiple methodologies to triangulate a defensible range.
- Discounted Cash Flow (DCF) analysis with detailed projection assumptions and discount rate justification
- Comparable company analysis using relevant public trading comps
- Precedent transaction analysis to benchmark deal multiples
- Scenario-based sensitivity across key value drivers
- Identification and documentation of add-backs and non-recurring items
Outcome
The valuation provided a clear and structured view of the company's worth under different scenarios, with full documentation of assumptions and methodology.
- Gave the client a defensible DCF valuation to present to investors
- Improved clarity around key drivers, risks, and normalised performance
- Supported deal negotiations with a well-structured, documented valuation framework