Portfolio valuation


  • Our client is a state-owned company holding more than 50 investments for a total value in excess of 15 billion euros
  • Issues for our client are the following:
    • Estimate the total value of the portfolio and its performance over the last twelve months
    • Identify any potential write-off to be recorded on specific investments
    • Identify issues related to business critical situations
    • Present the conclusions to the Audit Committee

Our role

Our role comprised 4 steps:

  • Step 1: Prepare a valuation methodology handbook
    • Methods used
    • Discount rate computation
    • Peers selection and analysis
  • Step 2: Design synthetic outputs
    • For internal use by the financial department
    • For reporting to the Audit Committee
  • Step 3: Value the investments in the context of the year-end closing
    • Collect data from the investment directors and the companies
    • Challenge the Business Plan presented by the companies
    • Organize the supporting information and materialize the audit track for the external auditors
  • Step 4: Implement solutions for internal quarterly updates


  • Valuation of the portfolio
  • Synthetic reports on each investments highlighting points requiring specific attention

Value added for our client

  • Ability to mobilize a team of 10 experts in valuation, with a strong involvement of partners
  • Expertise in valuation and ability to transfer knowledge on valuation techniques
  • Experience in the communication with Audit Committees