CREATING A VALUATION MODEL
Valuation of a broker, incorporating a brief PEST analysis, in Thailand
CLIENT
A well-established, independent broker specialising in health insurance in Southeast Asia.
REQUIREMENT
Creating a valuation model for a broker and IPMI MGA
CHALLENGE
The client wanted to be worth a certain amount before they would be willing to sell. The question was: with all factors considered, would this broker be valued above their ‘selling’ threshold?
SOLUTION
Background research of the location country is necessary to establish any external contributing factors. This involved undertaking a PEST analysis of Thailand. We researched similar-sized deals to our client to establish the correct multiple to use, and additionally analysed the financials of listed companies to provide further context to our model. MGG undertook a set of interviews to find out the perception of the market (and client) in Thailand and any additional information.
EXAMPLE OUTPUT
THE OUTCOME
MGG valued the company, and presented the conclusions to the owner of the client company. They decided not to initiate the process of preparing to sell due to the value it was ultimately worth, as the owner would like it to be valued at a higher price before this. However, this was still beneficial, as the owner was then able to understand the elements of value and now knows what he needs to do to reach the value he wishes.