M & A Execution (Both Sell and Buy)

Valuation & Buyer Search for a Leading Manufacturer /exporter of Readymade Garments

About the Client

One of India’s largest manufacturer /exporters of readymade garments wanted to undertake a financial valuation for sale of its export business.

Project Objectives

Core objective was to undertake financial valuation of the company to arrive at a fair value and assist in buyer search. Key aspects of the project included:

  1. What will be a fair value of the company basis existing business performance & future forecasts?
  2. Help the company search for buyers for its export business
  1. Computed valuation of the business basis:
    • As-is-analysis – existing business review including financial performance
    • Benchmarking on key financial parameters vis-à-vis competitors
    • Analyzing company projections for the next five years
    • Valuation basis appropriate valuation techniques including discounted cash flow, book value and relative valuation approach
  2. Assisted in buyer search:
    • Prepared pitch document for potential buyers
    • Identified potential buyers
    • Approached and solicited interest
    • Facilitated meetings, negotiations and signing of agreement

Acquisition of Target / Majority Stake in Men’s Ethnic Wear Company

About the Client

India’s largest branded fabric and fashion retailer, wanted to diversify its product portfolio by venturing into men’s ethnic wear business through inorganic means.

Project Objectives

Core objective was to identify & evaluate investee companies in men’s ethnic wear segment for acquisition of target/ majority stake, answering the following questions:

  1. Who are the target investees?
  2. What is the profile of target investees?
  3. What should be the basis of shortlisting or evaluating potential investees?
  1. Provided current market scenario of men’s ethnic wear segment in India and detailed profile of target investees:
    • Market scenario – market size and growth, existing players, location strategy, etc.
    • Target investees’ profiles – company background, product portfolio, no. of stores, design capability, sourcing model, manufacturing capacity, logistics & warehouse, etc.
  2. Based on evaluation matrix, few of them were shortlisted and prioritised. A detailed proposal for the target investees was prepared to present the business opportunity.
  3. Meetings and discussion with client’s management was conducted for valuation of the target and structuring of the deal.