Business case
Our client, a leading listed French real estate company, required an independent valuation of its residential development division. This valuation was necessary to determine the group’s consolidated net asset value (NAV), as disclosed in the reference document filed with the stock exchange authorities.
We delivered robust assessments of enterprise and equity values to be included in the group’s reference document, and we provided clear, well-supported explanations of our methodologies and conclusions to the group’s auditors.
We conducted a critical review of the business plan prepared by Management, with a particular focus on market assumptions, projected sales and gross margins. We also analysed the impact of economic cycles on the terminal value, including the determination of a recurring level of working capital. Additionally, we calculated the appropriate cost of capital and performed a comprehensive sensitivity analysis.