Portfolio Valuation – Private Equity
Request Overview
- To change the valuation methodology of the client’s portfolio company from Post-money equity value to the DCF, Trading, and Transaction analysis
- The investment became a year old and hence, it was required to change the valuation methodology
- The client mainly wanted a calculator for the three methodologies, inputs being handled by them
Final Deliverable and Value Add
- Created template for all methodologies with a tab summarizing the valuation from the methods
- Post that, screened through the company financials in detail to list down the line items for the calculation of the unlevered free cash flow used for the DCF valuation
- Found comparable companies and comparable transactions to be used for the valuation analysis
- Apart from the traditional DCF valuation method, the team also conducted trading and transaction comps
- This exercise saved ~1.5 days work of client
To conduct valuation exercise on portfolio companies on a quarterly basis
