Valuation of an Asian Industrial Conglomerate
CIGP performed an independent valuation analysis of an Asian conglomerate, active in multiple businesses, spanning from telecommunications, air transportation, renewable energies to mining and real-estate. CIGP leveraged its financial modelling expertise and knowledge of the region as well as relevant industry sectors in order to perform its valuation analysis.
Transaction Highlights
CIGP was appointed by the Board of Directors of a leading Asian industrial conglomerate to perform an independent valuation analysis of each of its various divisions, in order to provide its shareholders with useful metrics to quantify the investment return on the original capital invested and plan a long-term incentive plan for the management of each of the respective businesses.
Founded in the early 1990’s, the conglomerate operates significant resource and infrastructure projects primarily within the region. It has a diverse portfolio of businesses ranging from telecommunications, air transportation, information technology, financial services, renewable energies, real estate and mining services sectors. It manages the largest mobile telecommunications company, the largest domestic airline as well as the first wind farm of the country in which it is headquartered.
Role of CIGP
Independent valuation and financial modelling: CIGP performed an independent valuation of the conglomerate using a sum-of-the-parts approach. Market-based comparable multiples, regression analysis, discounted cash flow and valuation at cost methodologies were used while valuing each division of the conglomerate.
Business plan review: In addition, CIGP leveraged its insights in the various relevant business sectors in which the conglomerate is active, together with its regional expertise to challenge the business plan’s assumptions provided by the company. CIGP adjusted the financial projections independently based on macroeconomic, industry and region-specific drivers, to quantify the return on capital invested and draw an appropriate long-term incentive scheme.
