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Business case

Valuation & Investment

Sub-industry: E-commerce


Our client, a retail company operating in the e-commerce sector, wished to set up a profit-sharing plan for the company’s managers in order to incentivise them to develop the business activity.

Key Takeaway

Profit-sharing plans for company managers are usually implemented to involve managers in the development of the company and motivate them to achieve objectives. In order to set up profit-sharing schemes, it is necessary to carry out a valuation exercise to estimate the market value of the company’s equity. To value a company with different business segments, a sum-of-the-parts approach is more typical as it makes it possible to take into account the operational specificities and risk of each business line.

Accuracy Role

During our three-week engagement, we valued the company using the discounted cash flow (DCF) method, which we considered to be the most appropriate to take into account the growth and profitability trajectories projected in the business plans.