Business valuation for investment banking firm


An investment banking firm with headquarters in the Middle East.


The client was seeking support in evaluating the pipe business of a global conglomerate based in Hong Kong. The conglomerate carried out operations via two entities in the UAE. SG Analytics’ project scope included a merger analysis of the two entities, followed by a valuation across various methodologies.


SG Analytics understood the client requirements in detail and implemented the following solution:
  • Assess the business structure of the two entities, including the management structure, and modeling the business.
  • Forecast a 5-year semi-annual model with separate financial statements for each of the two entities and subsequently merge the financials to form a merger model.
  • Calculate the synergies and impact on the capital structure of the merger entity.
  • Analyze sensitivities on the accretion and dilution versus the premium paid.
  • The model 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 included company comparables and precedent transactions
  • Calculated the enterprise value using different weightings.
  • The output involved different scenarios (base, bear, bull), sensitivity analysis, football field analysis and key ratios.

Value Delivered

SG Analytics enabled the client to better evaluate the deal with a working model showing the merger analysis.
The client used SG Analytics' analysis to advise its end client.