Business case
Our client, a private equity firm dedicated to Africa, engaged us to perform an independent valuation in the context of a transaction. The target company was a rapidly growing group specialised in the distribution of medical and surgical equipment in Africa through eight operating subsidiaries.
We analysed the historical financial performance of all eight subsidiaries to understand the key drivers of growth (organic vs external), as well as the cost structure and margins. This allowed us to challenge the assumptions underlying the business plan, which appeared rather conservative.
Management’s perspective supported the position that the radiotherapy market would soon be mature, and the presence of many competitors would weigh heavily on prices despite promising local market prospects.
We were engaged to estimate the market value of the group using various methods.