Management Consulting – Case Study 3.3

Company profile:
Our client company is a commercial landscape and full maintenance service provider. Their commercial clients are located throughout Texas. In addition, the President is involved in owning and operating other peripheral businesses.

The Challenge / Business situation:
The purpose of our engagement was to provide a valuation opinion on the strategic value of the target company to our client company. This was the largest acquisition target in the business history of our client company.

ValuLink Approach and Solution:
We understood the strategic objectives of our client company’s business initiatives. We relied on two valuation approaches: income and market. We identified discontinuities in the financial performance of the target company and sustainable operating performance of our client’s management style. Post due diligence, we reviewed, collaborated, and advised our client on the key drivers of the target company’s valuation and reflected our findings through adjustments to the operating performance of the target company.

The Result:
Our in-depth analysis, insight into industry multiples, and understanding of the asking price of the target company provided our client with an enhanced knowledge of the future operational performance of the target company. Based on our opinion and financial valuation, our client company, without hesitation, increased their offering price by 73% still remaining 25% under the fair market value of equivalent transactions within the industry. This enhanced our client company’s top-line and bottom-line business performance.

Client Company Feedback:

“You [ValuLink, L.L.C.] exceeded my expectations. In the end, I followed your valuation recommendation and purchased our targeted company from its shareholders.”

– President & CEO
Hunt Brothers, Inc.

*The above case study is for informational purposes only and should not be used for any other purpose.