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Business case

Assisting a European conglomerate of industrial companies

Sub-industry: Precious metals


Our client, a European conglomerate of industrial companies, was looking to acquire a fast-growing company, active in the production of commemorative coins for collectors, minted from precious metals (gold, silver, platinum).

Key Takeaway

Amidst global uncertainty caused by COVID-19, precious metal prices increased significantly in the twelve months preceding our engagement. This inflated the target company’s profitability as it held excess precious metal inventory. Due to the absence of a formal inventory management system, we conducted a detailed assessment of the target’s precious metal inventory. In close collaboration with the acquirer’s metal expert, we calculated the incremental profit caused by precious metal price increases, ultimately helping our client renegotiate the purchase price.

Accuracy Role

We performed financial due diligence on the potential target, assisting our client in understanding the impact of precious metal price developments on the profitability of the target.