Case Study

Fast full valuation supports swift business sale

FRP met a tight deadline to deliver an independent enterprise valuation in support of the pre-packaged sale of a retailer

Published: 24 September 2020

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Written by:

Chad Griffin

Partner

Restructuring Advisory Edinburgh

Matthew Flower

Partner

Corporate Finance London

Background

The coronavirus pandemic has had a devastating impact on many businesses. One of those severely affected was a national homeware retailer, which was experiencing challenging trading due to a downturn in consumer confidence and as a consequence of COVID-19. The management team had been exploring refinancing and new ownership options, and the best option available to the Company following a marketing process involved a pre-packaged sale from administration.

Action

FRP was asked to provide an independent valuation for the company, its advisers and lenders, to assess the offers received for the business. Our team was able to engage quickly and produce an enterprise valuation report to a tight deadline, despite the challenges of valuing a historically loss-making business in a very uncertain market during the coronavirus pandemic.

Outcome

The valuation report, produced to a tight timeframe and during a very uncertain period for valuations, was used by the company to support the successful pre-packaged sale of the business.