An investor who was buying a 20% stake in a private company approached us to determine if the valuation of the company as provided by the seller was reasonable.

By performing financial and trend analysis, examining macro-economic factors including past, present and future performances, and constructing different case scenarios, we were able to determine the plausible valuations of the company.

The analysis we provided enabled the investor to realistically negotiate the 20% investment purchase and obtained a bargain purchase of 37.5% (below the initial asking price).