Business case
Our client held a minority stake in a company owning local convenience stores. As the majority shareholder intended to sell, our client engaged us to define the right strategy to adopt.
The distribution sector had been experiencing a significant decline in activity during the Covid period and in the immediate aftermath. Moreover, the convenience store business in the region was facing intense competition from local hypermarkets, which were generating a higher level of profitability.
We analysed the stores’ performance to estimate a fair acquisition price by drawing up a realistic business plan and looking at trading multiples and comparable transactions. We also advised our client on the various available options and the best strategy to adopt regarding the selling shareholder.