As part of an international growth strategy, the client, a subsidiary of a major Australasian utility, required a valuation of a European technology firm which was seen as a strategic target. Valuing the target based in Belgium required a knowledge of the potential of the company to grow in the European utilities sector.
The CRA Energy consulting team created a valuation based on multiple methodologies, providing commentary on the value and limitations of these approaches in the current economic climate. CRA conducted interviews and a site visit to validate any red flags identified as part of the diligence effort, leading to areas of focus for the potential acquirer. A stress test was applied to the financial forecasts provided by the target through our knowledge of the energy market in Europe and globally.
The client received a valuation with a report on the key areas of focus for a software technology company in the energy retail sector in Europe. This allowed them to successfully bid for the company. CRA’s analysis helped the company understand the European market and facilitated further engagement and commercial negotiations between target and client.