Case study

Valuation of an acquisition target for a software development company

Situation

The company wanted to strengthen its operations in a new market and therefore requested a consultant to perform valuation of another software development company. Delivery Partners helped validate the business plan of the target and assess potential synergies between the acquirer and the target to support the valuation.

Our work

  • Analysis of the software development market evolution and attractiveness
  • Review of the target’s strategy
  • Analysis of the risks involved by the separation from the parent company
  • Identification of the risks and opportunities related to the company’s business plan
  • Assessment of the target’s performance
  • Valuation of the synergies between the acquirer and the target

Results

The ask price was significantly reduced based on in-depth examination of the target’s business plan and valuation of the synergies.