Latest Transactions...

  • Sale of Swiss flexible packaging companies
    Elag Verpackungen AG and Elsaesser Verpackungen AG
    to Ampac, USA
  • Role of Proventis Partners AG, Zurich:
    Exclusive financial advisor to the owner
    throughout the sales process
  • Sale of proofreading, adaptation and translation company
    WIENERS + WIENERS GmbH
    to Caldec Beteiligungen GmbH
  • Role of Hartmann Zillmer Corporate Finance, Hamburg:
    Exclusive advisor to the owners
    throughout the sales process
  • Acquisition of
    Medical Biomaterial Products GmbH
    by a family holding through a Management Buy-In
  • Role of Hartmann Zillmer Corporate Finance, Hamburg:
    Advisor throughout the acquisition process and realization of acquisition financing for the buyers
  • Private Investors
    acquire 100% of the shares
    of medi-cine medienproduktions GmbH from CompuGroup Holding GmbH
  • Role of von Proventis Partners Munich:
    Exclusive buy-side advisor
    in the acquisition process
  • Reviva AG
    acquires the majority of the shares of the Swiss tradition company
    Faude & Huguenin AG Medals and coins
  • Role of Proventis Partners Zurich:
    Exclusive sell-side advisor
    and support of restructuring in the Board of Directors
  • Oerlikon Balzers Ltd
    acquires
    hartec Anlagenbau GmbH, Germany
  • Role of Proventis Partners Zurich:
    Exclusive buy-side advisor to OC Oerlikon
    in all dimensions and phases of the process
  • Borchers Consulting
    acquires 100% of the shares
    of Teraport GmbH from caatoosee AG
  • Role of Proventis Partners Munich:
    Exclusive buy-side advisor
    in the complete acquisition process
  • An international bank syndicate
    refinances 20 MEUR
    to MEPGroup for a 6.3MW solar park in Italy
  • Role of Proventis Partners Munich:
    Exclusive Corporate Finance Advisor to MEPGroup
  • JAB Anstoetz Group
    acquires a majority of
    GolfHouse Direktversand GmbH
    from Arques Industries AG
  • Role of Hartmann Zillmer
    Corporate Finance    ,
    Hamburg:
    Exclusive advisor to the acquirers
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Multiple method – comparable valuations among comparable companies

Application of the multiple method

  • Quick valuation of the potential market value to have a basis for negotiation
  • Applied in many situations, particularly in mid cap companies to get to a valuation without complicated calculations

Advantages

  • Simple valuation method based on limited data
  • Takes into consideration actual market data
  • Not based on a business plan or outlook, contrary to the DCF method
  • Data are often publicly available

Disadvantages

  • Often, the comparability of the peer group with the target company is insufficient or difficult
  • Individual strengths and unique opportunities of the company to be valued are not taken into account

Calculation

Multiple Method

An example

The multiples are applied based on:
  • EBITDA minus debt (Equity Value)
  • Revenues, EBIT and EBITDA (Enterprise Value)

EBIT and EBITDA are taken into account most frequently.

The following market data are considered for the calculation:

Peer Group EBIT
(in kEUR)		 Enterprise Value (EV)
(in kEUR)		 EBIT-Multiple (EV/EBIT)
Enterprise 1 15,500 141,050 9.1
Enterprise 2 13,200 116,160 8.8
Enterprise 3
11,000 94,600 8.6
Enterprise 4
9,200 76,360 8.3
EBIT-Multiple (Median)

8.7

The EBIT of the target company is EUR 11,445k

Enterprise Value = EBIT x EBIT-Multiple (Median)
= 11,445 x 8.7		 99,572
- Net debt
- 54,090
= Equity Value (in kEUR)
= 45,482