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Business case

Valuation for one of Europe’s leading listed private equity firms

Sub-industry: Private equity

Context

Our client, one of Europe’s leading listed private equity firms, invests in middle market companies with a focus on long-term value creation. The company reports its net asset value (NAV) to the markets on a quarterly basis.

Key Takeaway

The primary methodology retained for the estimation of the net asset value of the clients’ unlisted investments is the listed comparable company multiples method. By applying this methodology, the choice of comparable companies and the type of multiple (EV/EBITDA, EV/EBIT, etc.) are very important. The two main drivers of the multiples derived from the market value of a company are systematic risk and future growth.

Accuracy Role

During our three-week engagement, as an independent expert appointed by the client’s audit committee, we performed the estimation of the net asset value of the client’s unlisted investments as part of its quarterly valuation process.

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