Our client, having recently set up a family office, wanted to take a minority stake in a listed real estate target. The target, which is located in the west of France, grew strongly over the past few years and was diversifying into the real estate sector.
We worked with the target to understand and analyse the business plan assumptions and business drivers. While the group has diversified its activities over the past few years to position itself in operating activities, the historical and projected growth was mainly driven by property development activities. In order to value the group activity using the NAV method, it was necessary to analyse the net margin of identified development projects and restate all non-productive elements.
