Challenge

A leading commercial agribusiness client in Argentina was interested in selling their company, which was focused on cultivating and producing olive oil, table olives and wines. The company retained Valuation Research Group’s Argentinian affiliate, R. Biasca & Associates, to develop a valuation analysis of all the assets the company owned as part of the process to get the company ready for sale.

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Solution

R. Biasca & Associates approached the full valuation and consulting process in three phases:
  1. Valuation Phase. Conduct initial data gathering for development of the valuation.
  2. Mergers & Acquisition Phase. Development of the Memorandum as part of the sell-side M&A process, assist in search for potential buyers, and assist in managing negotiations.
  3. Management Consulting Phase. Develop and deliver strategic recommendations (specifically, to split the wine from the olive business) and operational proposals, and address shareholder/management issues.
At the time of the valuation, VRG’s analysis arrived at an estimated fair value sale price of approximately US$20 million dollars however, the company owners were targeting a price of US$30-35 million dollars. In Argentina, oftentimes local inflation rates and a politically influenced exchange rate can add complexity to the valuation analysis.

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