Replicon Valuation Analyses Enhances M&A
31-08-2011, ph

Replicon Corporate Finance has conducted valuation analyses for a social media company in order to enhance its partial M&A process. From the valuation analyses our client gets tools that can be used in trade sale negotiations. Only one business unit will be sold and the proceeds will be used for global growth opportunities in other business units. Replicon acts also as the financial adviser for this client in the M&A project.

Parties have agreed that no further details of this project will be disclosed but below please find some information on our valuation services and its limitations. “Some say that valuation of a promising growth company is closer to art than science. This is true at least in that sense that one can’t expect to receive any meaningful single point estimate on “the true” value from the work. At best we can create a range of relevant estimates that are based on several independent valuation methods”, says Petteri Hirvonen, CEO of Replicon Corporate Finance Ltd. “But nevertheless it is important to notice, that from our valuation package one can receive very valuable arguments for e.g. future transaction price. Execution of the deal becomes clearly more straightforward”, he continues.

Replicon valuation package always includes cash flow based valuation with proper sensitivity analyses; peer company valuations form private equity and publicly listed companies and also some recent examples from relevant M&A activity. “Once again we have a much better understanding on the range of possible future transaction prices and also some concrete tools for justifying increases or decreases of the valuation,” says Jouko Ahvenainen, Senior Partner of Replicon.

Replicon offers its Valuation Services to leading Finnish growth companies as well as their main shareholders and stake holders, e.g. public sector organizations. More info on cash flow modelling: Cash Flow and Business Modelling
On top of traditional valuation methods Replicon can provide also real options based analyses, when justified: An Introduction to the Valuation of Real and Financial Options_(Presentation in Finnish)

For further information on our valuation, M&A and other services for innovative growth companies, please contact:

Petteri Hirvonen, CEO, Senior Partner
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Jouko Ahvenainen, Senior Partner
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Arsi Rosengren, Associate Director, Partner
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About Replicon

Replicon Group is an independent financial and business adviser for growth companies and growth investors. We are a Certified Adviser in NasdaqOMX First North market place and a qualified operator in publicly funded growth company programs. Replicon provides financial and related strategic solutions that facilitate business activities, efficiency, and increase profitability of corporations and other organizations. Our core competence is in solutions that facilitate growth based on innovation, e.g. in Web2.0, HealthBio and Cleantech sectors. Replicon’s homepage is