The Case Study Artesia is divided in three parts:
- A Financial Valuation with Intrinsic Approach of the company based on Cost of financing and Free Cash-Flow method.
- A Financial Valuation with Relative Approach of the company based Multiple approach: Sales, EBIT, EBITDA and Net Income Multiples.
- A Recommendations and explanations section.
- Intrinsic Approach provided a value of 223 Million Euros while Relative Approach provided a value of 183 Million Euros.
- A recommendation would be to include an Earn-out term in the acquisition for the difference amount between the two approaches.
- Look at the PDF for further details!