Strategic Merger Valuation for the Manufacturing Sector

Context

Two manufacturing groups — one Saudi, one regional — explored a strategic combination to consolidate market share, rationalize manufacturing footprint, and unlock synergy value.

Challenge

Shareholder groups on both sides held different valuation expectations, complicated by differing accounting policies, FX translation, and minority interests. A neutral, defensible independent valuation was required to anchor the negotiation.

Our Approach

• Independent valuation of both entities — DCF, transaction multiples, and asset-based — bridged to a single common basis.
• Synergy quantification, sensitivity analysis, and post-merger ownership scenarios.
• Negotiation support — including chair-of-finance role in shareholder workshops to bridge perception gaps.
• Completion mechanism advice (locked-box vs. completion accounts) and integration planning.

Outcome

A combination structure was agreed by both shareholder groups, the SPA executed, and the merger closed within twelve months of mandate kick-off.