Benchmarking of Valuation Practices for a PE firm based out of KSA

‌‌The client, a KSA-based Private equity firm, was keen on finding out the commonly applied guidelines and processes regarding the valuation exercise of portfolio companies.

‌Problem Statement
‌‌‌The client was looking to undertake benchmarking exercise on valuation practices adopted by leading global and local venture firms. The engagement included:

• ‌‌‌‌‌Outlining the end-to-end and step-by-step process of valuation exercise
  
• ‌Finding out How, When, and By whom the valuation exercise will be carried out
  
• ‌Drafting a policy framework to ensure that the valuation is being done as per global standards and follow the same guidelines in the future to ensure consistency and accuracy

Action Taken

• ‌‌Considered vital factors: How, When and Who during benchmarking of valuation practices
  
• ‌‌Analyzed the valuation practices adopted by leading global and local PE firms
  
• ‌‌‌‌Highlighted valuation method guidelines, their comparison, and valuation techniques
  
• ‌Summarized the questionnaire sent to similar funds, and the responses received
  
• ‌‌‌‌‌Reached out to closed investor network beforehand to validate the pitch deck and financial model
  
• ‌‌‌‌‌Designed the final recommended portfolio valuation approach and proposals from independent 3^rd party experts for framing the valuation policy and procedures

Deliverable

• ‌Suggested the valuation approach by benchmarking globally and locally adopted practices
  
• ‌‌‌‌Designed valuation policy and procedures framing proposals from independent 3^rd party experts