Success cases
Valuation of a fruit and vegetable company
A company dedicated to developing innovations for fruit and vegetable growing applications and which has created a technology to improve the product’s appearance at the point of sale wishes to conduct a valuation of its business.
Challenge
A company developed a novel technology to reduce the impact of diseases and post-harvest defects in different types of fruit. The technology has been developed and is awaiting regulatory validation.
The company’s shareholders want to value the company based on its current status and potential through different growth assumptions.
Solution
We carried out two types of study: static, based on the annual accounts of the last financial year, and dynamic, based on different assumptions for its future development.
The technology was studied in detail, the competition was identified, the potential market was quantified, and future projections were made, considering different contingencies and scenarios, including complementary business models.
The costs associated with the activity described above were defined, and probabilities of success related to the pending regulatory phases were assigned.
Result
- Shareholders were able to gain a good understanding of the risks and opportunities defined by each of the proposed assumptions and scenarios, with associated degrees of probability.
- The sensitivity of crucial valuation variables was analysed.
- A transparent company value was established, with ranges associated with the business operation scenario (direct sale or licence to third parties).
“Probabilities of success associated with the pending regulatory phases were assigned”.
Success case studies in the sector Agrifood
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