What is your business worth?

We begin by carefully studying your financial results to establish the true sustainable profitability of your business, beyond exceptional fluctuations.

This first step is fundamental because it determines the level of profit your business can generate consistently. A potential buyer will primarily be interested in this normalized profitability to evaluate their return on investment.

This thorough analysis allows us to establish the normalized EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), a key indicator used by buyers to evaluate real operational profitability.

We examine the multiples of comparable public companies and recent transactions in your sector to determine a valuation range consistent with the market.

This method uses multiples as a calculation basis - generally EBITDA multiples in most sectors, but sometimes revenue multiples, net profit, or other indicators specific to certain industries.

We leverage our proprietary database of private transactions, supplemented with data on comparable public companies, to determine the most relevant valuation multiples for your business.

We create in-depth financial models to accurately estimate the value of your business based on its ability to generate future cash flows.

To perform this analysis, we develop detailed financial projections over 5 to 10 years taking into account:

• Historical and projected revenue growth
• Profit margins and their evolution
• Capital expenditure requirements (CAPEX)
• Working capital requirements
• Weighted Average Cost of Capital (WACC) reflecting specific risk

This method is particularly relevant for growing companies or those with development projects that will significantly change their future profitability.

By combining the results of comparative and financial analyses, we define a precise and realistic value for your business, corresponding to the price you could obtain during a transaction.

Enterprise value represents the total value of your business, regardless of its financial structure. It includes both the value of equity (shares) and net debt.

This crucial step harmonizes the different valuation methods to arrive at an accurate estimate, but also takes into account qualitative factors that influence value:

• Dependence on key customers or suppliers
• Strength of the management team
• Competitive position and market share
• Intellectual property and competitive advantages
• Industry trends and potential disruptions

Finally, we determine what you will concretely receive once the transaction is completed, after repaying any debts and financial commitments.

Here are the main elements to subtract from enterprise value:

• Bank debt and long-term loans
• Finance lease obligations
• Provisions for litigation or contingent liabilities
• Deferred tax liabilities
• Unfunded pension obligations

This last step is particularly important for you as an owner, as it determines the amount you will actually receive during the sale. It also clearly establishes the adjustments to be anticipated in the purchase agreement.