Collaborating with Andersen Global in the UAE
Valuation of a marquee consumer exhibition business
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Assignment
A high-end exhibitions company operating in a dozen countries approached us to provide an independent opinion on the value of its UAE entity for a (secondary) equity transaction.
Our Approach
Outcome
The cashflows of the business rely heavily on the stall sales and sponsorship revenue. Give the company’s successful track record in the UAE, we were able to make a distinction between cash flows from repeat exhibitors and those from first-timers to clearly articulate the associated renewal risk.
We identified operating metrics such as revenue per exhibitor, cost per attendee, customer acquisition cost, and revenue per square foot, and benchmarked these against quoted exhibition companies to identify earnings multiple.
Our detailed business valuation exercise also factored in the portfolio risk (i.e., the reduction in risk that goes with operating multiple shows) which enabled the client to determine multiple outcomes and formulate the lower and upper boundaries of the valuation range.