Estimation of the fair exchange ratio for shares in two companies in the context of their merger

Sector of activity: Services
Size (sales in €m): 70

Context

  • Planned merger between two leading groups on their market, heading in different strategic directions
  • Activity dependent on non-recurring events, which are hard to predict, in a rapidly changing sector where the real estate aspect is key

Our mission

  • Intervention as an independent expert, jointly appointed by both parties to estimate the fair exchange ratio between the two companies
  • Comparative analysis of both groups: financial performance, positioning, product offering, type of clients and related behavior, real estate strategy
  • For each group, modeling of the business plan and estimation of the fair value through implementation of appropriate evaluation procedures which take account of the sector’s specific features

Results

  • Estimation of the fair exchange ratio, based on objective and independent analyses allowing for the specific features of each group, from a strategic and financial perspective

Key success factors

  • Familiarity with the sector making it possible to rapidly identify the operation’s key challenges and implement a structured and effective evaluation procedure
  • An integrated service between the real estate and intangible parts offering clients a single contact throughout the assignment
  • A team of experienced consultants who are fully familiar with the transaction process