Business case
Our client, a French listed company providing food and facility management services, aimed to refocus solely on food services, its historical business. After several divestments, it was looking for investors for its most profitable business: employee benefits services.
Employee benefits service providers have multiple sources of revenues. They rely on commissions from corporate clients and merchants, but also largely on lost & void vouchers, and financial interest from their structurally negative working capital requirements. The main challenges of the industry for the years ahead are digitalisation and unlocking the value associated with consumer data in a highly regulated environment.
We undertook financial vendor due diligence, including quality of earnings and debt analyses and a BP review. We also assisted our client in Q&A sessions with potential investors, mainly private equity funds based in the US.