Buy-side Valuation of a GCC-wide property management group
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Assignment
A leading UAE-based real estate investor wanted us to perform an independent valuation of a property management group operating across the GCC.
Our Approach
Outcome
The target’s business was affected by the pandemic and thus we had the challenge of estimating its sustainable earnings.
We analyzed the accounts of the target in great depth to identify and normalize each of the temporary measures undertaken related to short-term contract re-negotiations, group-wide restructuring activities, and other cost reduction measures.
By recasting the financials to iron out the one-off impacts during the pandemic, our client was able to accurately assess the target’s ability to generate free cash flows. The occurrence of all these one-off elements was captured in arriving at the valuation of the business.