Business Valuation for the Pipe Business of a Hong Kong-Based Global Conglomerate
Business Situation
Supported one of the Middle East-based IB firms in valuing the pipe business of a Hong Kong-based global conglomerate for a merger.
The project involved conducting a merger analysis of the two entities to understand the accretion effects of the deal followed by valuation across various methodologies.
SGA Support
Understood the business structure of the two entities from the management to model the business.
Provided forecast of a five-year semi-annual model with separate financial statements for each of the two entities and subsequently merged the financials to form a merger model.
Calculated the synergies and the impact on the capital structure of the merger entity.
Analyzed sensitivities on the accretion and dilution versus the premium paid.
Prepared a model that involved building out revenue, loan, balance sheet, and fixed asset assumptions and schedules to project the financial statements followed by a DCF analysis.
Market-based approach, which included company comparables and precedent transactions.
Output involving building different scenarios (base, bear, bull), sensitivity analysis, football field analysis, and key ratios.
