The valuation of a Chilean real estate and construction group supported a sale process
- Apr 23
- 2 min read
A group engaged in real estate development, civil engineering construction, and consulting was at a critical juncture. With multiple projects at various stages and a significant land bank, it needed a clear and well-founded estimate of its business value to move forward with a sale.
The nature of the business made this task particularly challenging. The activities involved long cycles, results that were sensitive to execution, and varying dynamics across business units.
The challenge was to develop a valuation that integrated these variables and enabled decision-making based on a common and consistent foundation.
Approach
Working closely with the client’s team, SummaPartners developed a valuation that reflects the business’s operational reality and its potential for value creation.
We structured the analysis around three complementary approaches:
Cash flows: projection and discounting of ongoing and go-forward projects, incorporating assumptions regarding growth, sales velocity, and execution.
Market comparables: comparison with recent transactions and industry multiples to validate the consistency of results.
Asset liquidation: estimation of the value of the land bank as a backup reference in conservative scenarios.
To capture the inherent uncertainty of the business, we modeled various scenarios, adjusting critical variables such as sales pace, costs, and project execution.
Impact
The work established a valuation range that facilitated a more expedited negotiation and enabled the transaction process.
Beyond the estimate, the valuation organized the available information and transformed it into a common basis for deciding, negotiating, and prioritizing growth, providing greater clarity on where value is generated within the portfolio.
Key Takeaway
A valuation is not just a number. It is a decision-making tool.
When the analysis reflects the business logic and its risks, it allows for aligning expectations, focusing negotiations, and prioritizing growth with greater clarity.
At SummaPartners, we help our clients maximize the value of their business, from valuation through to the execution of M&A transactions.
If your company is in the midst of negotiations or needs clarity on its value, let’s talk.