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Case Study: Valuation of Mid-Sized EPC Company in India

By February 5, 2024June 17th, 2024Case Studies2 min read
Valuation of Mid-Sized EPC Company in India


A mid-sized EPC company in India, specializing in infrastructure projects is undergoing a thorough business valuation to ascertain its fair market value for potential strategic partnerships, mergers, or acquisitions. However, the valuation process faces various questions.

Questions Arise:

  • How to value a complex project mix with varying risk profiles and revenue streams?
  • Are relationships with key clients stable, considering a significant portion of revenue comes from them?
  • Can economic fluctuations, regulatory changes, and market trends impact the company’s valuation?
  • Are the company’s assets accurately valued given technological advancements and evolving industry standards?

Answers Written Down:

  • Engage experienced EPC project valuation experts, utilizing methods like DCF, CCA, and precedent transactions to account for project diversity.
  • Conduct thorough client risk analysis, mitigating risks through diversification strategies, and establish long-term contracts for revenue predictability.
  • Implement sensitivity analysis in the valuation model to assess market fluctuations’ impact, adapting strategies for resilience and sustained growth.
  • Regularly appraise assets with third-party experts to ensure fair market value aligns with book value. Stay updated on industry best practices for specialized asset valuation in the EPC sector.

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