Key Highlights
- Independent Equity Valuation Delivered
- Dual-Method Valuation: DCF and Comparable Companies
- Prepared in accordance with IVS and GAVP
- Delivered within Approximately One Month
- International | Energy Trading | LNG and Pipeline Gas
Why an Energy Trading Company Needed a Valuation
An energy trading company engaged Consortia Advisory to determine the fair equity value of its business as it transitioned from historical refined products and aluminium trading activities into LNG and, more recently, pipeline gas trading. The shareholders required an independent valuation to support internal planning and strategic decision-making during a period of meaningful operational change.
Valuing an Energy Trading Business During Operational Transition
The engagement focused on assessing the company’s value during a period of operational transition, characterised by changes in its product mix, evolving trading volumes, and the early-stage recovery of profitability. The assignment required a balanced approach that captured both the company’s future performance potential and the current market environment within which it operates.
Our Approach: How the Business Was Valued
Consortia Advisory adopted a combined valuation framework, applying a Discounted Cash Flow analysis alongside a Comparable Companies valuation. The DCF method incorporated forward-looking assumptions on revenue growth and margin stabilisation. The Comparable Companies method utilised sector-specific trading multiples sourced from reputable global datasets. This dual-method approach ensured that the valuation reflected both fundamental business performance and relevant market benchmarks.
The valuation was prepared in full accordance with International Valuation Standards (IVS) and Generally Accepted Valuation Principles (GAVP), ensuring the report met the requirements for use in shareholder and strategic contexts.
Scope and Execution
Methodology:
- Combined valuation approach using DCF and Comparable Companies analysis: A Discounted Cash Flow model was built on forward-looking assumptions reflecting the company’s transitioning revenue mix and improving margin profile, while a Comparable Companies analysis applied sector-relevant P/E multiples sourced from reputable global datasets to benchmark the valuation against market evidence.
Deliverables:
- Full indicative valuation report prepared in accordance with IVS and GAVP: A professionally structured report presenting the methodology, assumptions, and concluded valuation range in a format suitable for shareholder discussions and strategic planning.
- Detailed financial projections and valuation assumptions: A complete set of financial forecasts and clearly documented assumptions underpinning both valuation methodologies.
- Sensitivity analysis and consolidated valuation range: A thorough sensitivity assessment illustrating how the concluded value responds to changes in key assumptions, presented alongside a clearly defined valuation range.
- Total delivery time: Completed within approximately one month, including review and validation stages.
Outcome
The client received a thorough and well-supported equity valuation that provided clarity on the company’s financial position and strategic outlook. The management team expressed strong satisfaction with the depth of analysis and the transparency of the methodology applied.
The valuation report was delivered in a presentation-ready format, making it immediately suitable for use in shareholder discussions, strategic planning sessions, and internal decision-making processes.
About Consortia Advisory
This engagement was led by the Consortia Advisory team, ICAEW-regulated advisors specialising in business valuations, business plans, and financial advisory for privately held companies across the UK, Cyprus, and Europe. Consortia Advisory combines rigorous financial methodology with a practical understanding of the commercial and strategic context in which valuations are used.