A global fruit company wanted to value a business unit, maximize its value, and structure the process for a future sale. Through a detailed assessment and the definition of initiatives, it was possible to structure a roadmap to strengthen the business unit and subsequently launch the sales process.
Context
After defining its future strategic guidelines, the fruit company wanted to increase its focus on certain assets and get rid of others.
The business unit to be sold had a large amount of capital invested in land and an attractive competitive position.
Thinking of maximizing the exit value, the company anticipated the sale by implementing initiatives to maximize company value and started to prepare the exit process.
Client’s objectives
Through the support of Matrix Consulting, the fruit company sought to achieve five main objectives:
- Define the business unit value.
- Identify initiatives to maximize the value of the business unit.
- Identify and mitigate potential risks of the future transaction.
- Generate the basis for the sales process, including the necessary documents for the transaction.
- Design a roadmap for the future transaction.
Proposed actions
Matrix Consulting valued the company using four different methodologies: discounted cash flow, precedent transactions, comparable companies, and settlement value. Different future scenarios were defined to perform the valuation.
The main risks were also identified, and the respective sensitivity analysis was carried out.
Regarding the preparation of the sale process, a Term Sheet was designed to define the terms of the transaction. Additionally, an Infomemo was generated to be shared with parties potentially interested in the company, and the information to be shared in the data room was also collected.
Impact
Matrix Consulting performed a comprehensive and robust assessment of the company, valued the business unit at ~US$450 million, and defined specific initiatives to maximize this value, along with a roadmap to launch the sales process.
