Business valuations need specialization, efficiency and proven independence. They are essential for various business and strategic decisions such as acquisitions, divestitures, mergers, IPOs, restructuring, converting closely-held or family businesses into shareholding companies.
Valuation services are amongst the core activities of AlShall, where value is through provision of independent and reliable recommendations about the value of a business through implementing the most suitable methodologies.
Over the past 10 years, AlShall has carried out more than 100 business valuations using different techniques and procedures. A number of those businesses included some of the most sophisticated businesses ranging from family-owned businesses to large capital shareholding companies. It is a testimony to AlShall that to date, it did not face major problems from the results and the consequences of the valuation assignments it has carried.
Project Example – Privatization.
Assignment
Privatization of local marketing operations of KNPC (fuel stations and oil blending plant).
Client Name
Privatization Committee led by Kuwait Investment Authority with Kuwait Petroleum Company.
Client’s Activities
Governmental – Public Sector.
Assignment Date & Duration
2002, 15 months.
Main Area of Focus
Review of old studies and data gathering
Prepare RFPS and qualification criteria to assign specialized third party consultants
Select sub-contractors
Develop privatization strategy that included:
– Pricing strategy (gross margin)
– National labor force
– Number of companies
– Ownership structure of these companies
– Basis of allocation of the fuel stations to these companies
– Regulatory supervision requirements upon privatization
– Valuation of companies
Services Provided
Held role of lead advisor to the committee for fuel stations and oil blending plant privatization.
Valued operations
Set-up an implementable privatization process
Presented findings to Privatization Committee and Higher Oil Council
Outcome
The fuel stations and oil blending plant were subsequently privatized in line with AlShall’s recommendations.
Project Example – Financial Restructuring.
Assignment
Preparing a corporate level strategy to restructure the debt and assets of an investment company (balance sheet restructuring).
Client Name
Kuwaiti investment company.
Client’s Activities
Leasing, finance and investment.
Project Size
Debt obligations size for restructuring: ~USD 125 million (contractual debt) and ~USD 50 million (other obligations)
Assets size for restructuring: ~USD 265 million (mostly real estate investment properties)
Assignment Date & Duration
2012, 3 months.
Main Area of Focus
Restructure company’s indebtedness (local debts) and investments with the aim of primarily: i) restructuring paying-out its defaulted financial obligations in full, ii) restructuring its assets-base, and iii) avoiding liquidation (or bankruptcy). The objective is to keep the company operating on an ongoing basis and restoring its profitability with an ultimate goal of protecting shareholders’ wealth.
Services Provided
Review, analyze and assess the company’s financial position and assess its liquidity base and solvency position.
Identify and assist in determining the fair value of the assets to be used in the debt restructuring plan and especially those to be collateralized.
Review the existing strategy and assist in developing a realistic strategic plan to serve the company’s goals and guide it in its corporate debt restructuring plan.
o Assist in setting strategies to ensure the settlement and closing of debt claims from all creditors and other related parties claims while preserving and protecting shareholders wealth.
o Assess and propose a debt restructuring plan and prepare debt restructuring schedules accordingly.
o Assess and estimate future cash flows under the context of a corporate debt restructuring plan.Propose an out-of-court Corporate Debt Restructuring (CDR) plan with alternative scenarios to be presented to creditors.
Assist the client in negotiations with creditors, especially the most senior creditors (in terms of size of outstanding debt and collateral) in order to reach an understanding on a CDR plan scenario acceptable to all stakeholders prior to resorting to protection under Kuwait’s Financial Stability Law (“FSL”) No. 2 of 2009.
Outcome
The company received approval to enter under FSL Law based on the CDR plan developed by AlShall.
Business Valuations Experience List
By Project Name | Country | Sector | Services Performed
2012
Valuation of an industrial company for potential purchase by a services company | Kuwait | Industrial | Valuation for purpose of potential purchase
Valuation of an oil and gas – infrastructure company for internal purposes | Kuwait | Oil and Gas – Construction | Financial analysis and valuation for internal purposes
Valuation of a private IT company | Kuwait | IT | Preliminary valuation for inclusion in a new holding company
Valuation of two investment companies belonging to same group of companies for purposes of merger | Kuwait | Financial Services | Valuation of two investment companies for merger purposes
Preliminary valuation of a local IT company | Kuwait | IT | Preliminary valuation
Preliminary valuation of a local services company for the purpose of selling stake | Kuwait | Services | Financial analysis and preliminary valuation
Valuation of an investment company for a merger purpose | Kuwait | Financial Services | Valuation for the purpose of merger with a real estate services company
Valuation of an industrial company for restructuring and expansion purpose | Kuwait | Industrial | Valuation for the purpose of restructuring
Valuation of a listed real estate company for merger purposes | Kuwait | Real Estate | Valuation of a listed real estate company and seven of its associates/subsidiaries for merger purposes
Valuation of a real estate company for merger purposes | Kuwait | Real Estate | Valuation of a real estate company for merger purposes
Valuation, pre-IPO placement and listing of a holding company | Kuwait | Services | Valuation of 5 subsidiaries and the parent company for pre-IPO placement, preparation of pre-IPO prospectus and KSE listing prospectus
Restructuring of an investment company | Kuwait | Real Estate – Financial Services | Restructuring and valuation of an investment company
Performance assessment of a real estate portfolio | Kuwait | Real Estate | Investment portfolio performance assessment
Valuation of a holding company | Kuwait | Real Estate – Financial Services | Valuation of a group subsidiary for internal restructuring purposes in order to investigate the potential of consolidating its activities with other companies within the same group
2011
Assessment of a listed real estate economy performance | Bahrain | Financial Services | Economy, sector, stock and company performance
Valuation of a group of pharmacies | Kuwait | Pharmaceutical | Valuation of eight pharmacies, one warehouse and multiple product agencies for acquisition purposes
Valuation of a listed real estate company for the purpose of merger | Kuwait | Real Estate | Valuation of a listed real estate company for the purpose of merger
Valuation of a real estate company | Kuwait | Real Estate | Valuation of a real estate company for the purpose of merger with a listed real estate company
Valuation of a company for merger purposes | Oman | Real Estate/Services | Valuation of a real estate/services company whose principle activity is to establish and operate amusement parks for merger purposes with a listed real estate company
Valuation of a company for merger purposes | Bahrain | Real Estate/Services | Valuation of a real estate/services company for merger purposes with a listed real estate company
Valuation of an oil drilling company| Kuwait | Oil & Gas | Financial analysis and valuation
Valuation of a real estate investments company | Kuwait | Real Estate – Financial Services | Valuation for the purpose of divesting stake
Valuation of investment companies for merger purposes | Kuwait | Financial Services | Valuation of two investment companies for merger purposes
Valuation of investment companies for merger purposes | Kuwait | Financial Services | Valuation of two investment companies for merger purposes
Valuation of investment companies for merger purposes| Oman – Egypt | Pharmaceutical | Valuation of two investment companies for merger purposes
Valuation of a listed real estate company for merger purposes | Kuwait | Real Estate | Valuation of a listed real estate company for merger purposes
Valuation of a holding company in order to investigate the potential of consolidating its activities with other companies within the same group |Kuwait | Real Estate -Financial Services | Valuation of a holding company i.e. part of a group for internal restructuring purposes
Valuation of an IT services company | Kuwait | IT | Valuation of an IT services company for internal purposes
Valuation of a real estate company for acquisition purposes | Kuwait | Real Estate | Valuation of a real estate company for acquisition purposes, and buy-side advisory
Valuation of a real estate company for merger purposes | Kuwait | Real Estate | Valuation for the purpose of merger with a real estate services company
Valuation of a real estate services company for merger purposes | Kuwait | Real Estate | Valuation for the purpose of merger with a real estate company
Investment company valuation | Kuwait | Financial Services | Financial analysis and valuation
2010
Valuation of a media company for selling a stake | Kuwait | Media | Valuation of a media company for selling a stake
Qualification and prequalification for Kuwait Failaka island project under PPP scheme | Kuwait | BOT | Qualification and prequalification for Kuwait Failaka Island project under PPP scheme
Qualification and prequalification for airport development plan under PPP scheme | Kuwait | BOT | Qualification and prequalification for airport development plan under PPP scheme
Valuation of a real estate investment company | KSA | Real Estate | Valuation of a real estate investment company for internal purposes
Valuation of an investment company for restructuring purposes | Kuwait | Financial Services | Valuation of an investment company for restructuring purposes
Valuation of four real estate companies for purposes of restructuring | Kuwait | Real Estate | Valuation of four real estate companies (sister concerns) for purpose of restructuring and establishing a holding company
Valuation of an investment company for divestiture purposes | Kuwait | Financial Services | Valuation for divestiture purposes, preparation of information memorandum
Valuation and placement of an investment company | Kuwait | Financial Services | Valuation for the purpose of selling a stake in order to be listed on the KSE. Preparation of private placement memorandum, preparation of the listing report
Valuation of a major listed real estate company | Kuwait | Real Estate | Brief valuation of a major listed real estate company for internal purposes
Valuation of an oil and gas services company for internal purposes | Kuwait | Oil & Gas | Valuation of a listed oil and gas services company for internal purposes
Valuation of an international construction company | Kuwait | Contracting | Valuation for the purpose of selling a stake
Valuation of investment properties of a major warehousing/logistics company | Kuwait | Logistics | Valuation of investment properties of a warehousing and logistics company for internal purposes | Annually Since 2001
Valuation of two international hotels and feasibility for development of additional hotels and residential/commercial buildings | Sudan | Hospitality | Valuation of two international hotels and feasibility for development of additional hotels and residential/commercial buildings for internal corporate purposes
Valuation of a real estate company | KSA | Real Estate | Valuation of a real estate company for divesture purposes
2009
Strategic advisory for valuation of troubled companies | Kuwait | Financial Services | Strategic advisory for valuation of troubled companies
Valuation of an agricultural company | Kuwait | Agricultural | Valuation of an agricultural products company for internal purposes
Pre-valuation of a local trading company for internal purposes | Kuwait | Trading | Pre-valuation of a local trading company for internal purposes
Valuation of a major Kuwaiti bank | Kuwait | Financial Services | Valuation of a listed bank for the purpose of divestiture
Valuation of investment company for merger purposes with another investment company | Kuwait – Dubai | Real Estate | Valuation for merger purposes, merger & acquisition advisory
Valuation of a contracting company for capital increase and merger purposes | Kuwait | Contracting | Valuation for capital increase and business merger purposes
Valuation of a major trading and investments group | Kuwait | Trading | Valuation of major trading and investments group for internal purposes
Valuation of a listed real estate holding company | Kuwait | Real Estate | Valuation of a listed real estate company for the purpose of acquiring 10% stake
Valuation of a holding company and its five subsidiaries | Kuwait | Family Holding | Preliminary valuation of a holding company and five subsidiaries for the purpose of selling a stake
Listing of an investment company | Kuwait | Real Estate | Preparing information memorandum and listing
Valuation of a computer wholesaler and value-added reseller | Qatar | IT | Valuation of a privately-held IT distributor and reseller for divesture purposes
2008
Valuation and listing of a health care investment company | Kuwait | Health Care | Valuation for the purpose of listing on KSE
Valuation of petroleum co. for merger purposes with oil & gas co. | Kuwait | Oil & Gas | Valuation of Safwan for merger purposes, merger & acquisition advisory
Valuation of an oil and gas services holding company | Kuwait | Oil & Gas | Valuation and buy side advisory for the acquisition of a 20% stake in an oil and gas services holding company
Valuation of a real estate company | Kuwait | Real Estate | Valuation of a real estate company for internal purposes
Merger of a real estate company with a logistics company | Kuwait | Logistics | Valuation for merger purposes
Merger of a real estate company with a logistics company | Kuwait | Real Estate | Valuation, merger & acquisition advisory transaction
Consultancy services to a foodstuff trading company | Kuwait | Trading | Financial analysis and preparation of information memorandum
Valuation of a fashion trading company | Kuwait | Trading | Valuation of a fashion trading company for selling a stake
Valuation of a contracting company | Kuwait | Contracting | Valuation for internal purposes
Valuation of a petroleum services company | Kuwait | Oil & Gas | Valuation of a petroleum services company for pre-IPO capital increase
Valuation of a petroleum services Company | Kuwait | Oil & Gas | Valuation and sell side advisory
Valuation of a spare parts trading & services company | Kuwait | Trading | Valuation, legal & financial structuring & placement of an A/C and spare parts trading company
Valuation of a travel company | Kuwait | Tourism | Valuation for divesting a stake in a tourism services company
Valuation of contract between a local real estate company and an international real estate asset manager | Kuwait | Real Estate | Valuation of contract between a local real estate company and an international real estate asset manager, preparation of information memorandum for shareholders
Land purchase valuation advisory | Qatar | Real Estate | Financial valuation for a large mix of plots of land in Lusail
2007
Valuation of all business lines of a travel company | Kuwait | Tourism | Valuation of all business lines, including tour and travels, global aviation for internal purposes
Valuation of a tourism company | Kuwait | Tourism | Valuation for divesting a stake
Valuation of a family group | Kuwait | Family Holding | Valuation of the group for internal purposes
AlDar Spin-off of AlMadar Finance And Investment Company to Stehwaz Company | Kuwait | Financial Services | AlDar spin-off of investment in AlMadar – Stehwaz acquiring controlling stake. Valuation and information memorandum
Establishment of an oil & gas company for sale, maintenance & repair of oil production equipment | KSA | Oil & Gas | Valuation, legal & financial structuring & placement
Valuation and placement of a warehousing company | Kuwait | Logistics | Valuation, soft marketing and private placement
Privatization of printing press | Kuwait | Government – Privatization | Valuation for privatization of a services concern
Consultancy services to a transport company | Kuwait | Transport | Financial analysis and preparation of information memorandum
Valuation of a foodstuff trading company | Kuwait | Trading | Valuation of the group and information memorandum preparation
2006
Valuation and placement of a foodstuff trading company | Kuwait | Trading | Valuation and placement
Valuation of a contracting company | Kuwait | Contracting | Valuation and preparation of information memorandum for selling a stake
Valuation of an engineering projects company | Kuwait | Contracting | Valuation study, licensing, legal & financial structuring and Information Memorandum for a company dealing with A/Cs and spare parts
Valuation of a contracting company | Kuwait | Contracting | Valuation study, licensing, legal & financial structuring and Information Memorandum for a company providing specialized engineering and contracting services
Valuation of a landmark mixed-use development | Kuwait | Real Estate | Valuation and development of a private placement memorandum preparation for a landmark mixed-use development in Salmiya
Establishment of a medical center in Syria | Syria | Health Care | Financial structuring and placement of a holding company with the objective of establishing an international standard hospital in Syria
Valuation of an international hotel | Sudan | Hospitality | Valuation of a hotel for placement purposes
Valuation and placement of a petroleum services company | Kuwait | Oil & Gas | Valuation of oil service company and target companies, legal & financial structuring and placement
Valuation of a major resort | Kuwait | Hospitality | Valuation of a BOT project – major resort managed by international hotel manager
2005
Valuation of a Bank of Lebanon | Lebanon | Financial Services | Valuation of a troubled Lebanese bank for acquisition purposes
Acquisition of a major real estate company | Kuwait | Real Estate | Valuation, negotiation, deal structuring and due diligence for acquiring 35% in a real estate company
Valuation of a major hotel holding company | Kuwait | Real Estate | Valuation of a hotel holding company
Valuation of a foreign bank | France | Financial Services | Valuation of a foreign bank
Valuation of a financial services holding company | Kuwait | Financial Services | Valuation of a financial services company
Feasibility study of a mixed-use development | Kuwait | Real Estate | Feasibility study and valuation. Economic and financial advisory to development team for a mixed-use development
Valuation of a real estate company | Kuwait | Real Estate | Pre-valuation of a real estate company for acquisition purposes
Listing of a financial services company | Kuwait | Financial Services | Valuation, pre-placement and listing of financial services company on the Kuwait stock exchange
Valuation, placement and listing of a trading company | Kuwait | Trading | Valuation and legal restructuring of the company, due diligence, pre-IPO private placement and listing on the Kuwait stock exchange
Valuation and placement of a contracting company | Kuwait | Contracting | Valuation and capital decrease, strategic plan, capital raising, private placement
Valuation and placement of a trading & contracting company | Kuwait | Contracting | Valuation of a contracting company for pre-IPO selling of stake
Valuation of a closely-held company in the construction sector | Qatar | Contracting | Due diligence, analysis and appraisal of a construction company for the purpose of acquisition or divestment of an existing stake
2004
Preliminary valuation of a major hotel in Lebanon | Lebanon | Hospitality | Preliminary valuation of major hotel in Lebanon
Valuation of a manufacturing Company | Kuwait | Industrial | Valuation of a manufacturing company
Establishment of a real estate company | Kuwait | Real Estate | Valuation, feasibility study of capital increase, legal and financial restructuring and preparation of placement documents
Valuation of a logistics company headquarters building| Qatar | Logistics | Valuation of the headquarters of a logistics company in Qatar
2003
Valuation of a furniture industries company | Kuwait | Industrial | Valuation of a furniture industries company
Valuation of a brokerage company | Kuwait | Financial Services | Valuation of a brokerage company
Merger of two investment companies | Kuwait | Financial Services | Feasibility of a merger synergy study of two investment companies along with legal procedures and valuation of both companies and merged companies
2002
Valuation of an international hotel chain | Kuwait | Hospitality | Valuation of hotel and real estate properties
Valuation of a marble trading company | Kuwait | Trading | Valuation of marble trading company for internal purposes
Valuation of a private school | Kuwait | Education | Feasibility and valuation of a new exemplary private school
Valuation of a major exchange company | Kuwait | Financial Services | Valuation and sell side advisory for a leading exchange company
Strategic plan and valuation of a pharmaceuticals manufacturing/Trading Company | Kuwait | Industrial – Trading | Assist executives in developing strategic plan, and conduct valuation of a pharmaceutical marketing and trading company
2001
Valuation of a health care product trading company | Kuwait | Health Care | Valuation of industrial company for medical products
Valuation of an electrical maintenance company | Kuwait | Contracting | Valuation of an electrical maintenance company
Valuation of a trading company (holding) and its subsidiaries | Kuwait | Trading | Valuation of a holding company and its major subsidiaries