Business case

Valuing a European film production company

Situation: Transactions
Asset & investment valuation

Context

Our client, a leading French film producer and distributor, engaged us to value the company.

Key Takeaway

The key issues were (i) to value the company’s existing film portfolio / catalogue (films already released in cinemas) – we focused on the company’s highest revenue-generating titles; (ii) to value the films expected to be released in the next two years / identified projects; and (iii) to estimate normalised production / distribution after the identified projects.

Accuracy Role

We adopted a film-by-film bottom-up valuation approach to estimate the company’s value. This method required us to estimate the company’s future revenue by medium (TV, export, VoD, video and cinema). The projections were based on historical film success (box office, historical film sales, etc.) and expectations of future film production.

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