Business case
Our client, a major French film producer and distributor, engaged us to value a production company in the context of a potential acquisition.
The key issues were (i) to value the company’s film catalogue (films already released), (ii) to value the films expected to be released by 2025 and (iii) to estimate normalised production (unidentified films to be released from 2025) based on the typology of films released from 2015.
We valued the company using the sum-of-the-parts method. The valuation mainly consisted of estimating the company’s future revenues by medium (TV, international, VOD, video and cinema) for both released and unreleased films. This was primarily based on Accuracy’s proprietary valuation methodology, including TV ratings and viewership data, box office and historical sales.