DCF Valuation and Liquidation Analysis – Downstream Oil Industry

Request Overview

• The client requested to conduct valuation of five subsidiaries (one public and four private) and eventually the holding company
• The client provided the historical financial statements
• The client wanted TresVista to evaluate the fair value of the subsidiaries and the holding based on different methods of valuation

Final Deliverable and Value Add

• The final deliverable consisted of an excel file with the valuation of each subsidiary and the holding company, along with a valuation report prepared to summarize the valuation methodologies used
• Proposed the idea of liquidation analysis to value the companies which cannot be valued as a going concern
• Provided the flexibility of “Revolver” to avoid negative cash balance
• Created a template to account for inter-company transactions

Prepared valuation models for the subsidiaries of a downstream oil holding company and prepared a consolidated valuation