Problem
An industrial pump manufacturer and exporter, holding a segment leader position in the market, reached out to Mentoro to explore inorganic growth opportunities abroad.
Approach
The alternative companies considered for acquisition and merger were evaluated financially based on scenario analyses. The growth projections, sectoral positioning, strategic and synergistic advantages they offer to the acquiring company, as well as their financial performances, were analyzed individually. A comprehensive business plan and financial valuation model were developed, incorporating all factors and parameters to enable a detailed comparison of different companies on the same platform.
Impact
Through this model, the companies’ current and estimated 5-year financial performances were evaluated and compared using different valuation methods, ensuring a standardized comparison across the board. The model also quantified the potential export contribution of the target companies to the acquiring firm and its financial impact, reflecting these aspects in the financial projections as a key element.
