ISS under kapitalfondsejerskab: værdiansættelse og analyse af værdiskabelsen

Anders Liu Hansen & Martin Tim Staun Andersen

Studenteropgave: Kandidatafhandlinger


This thesis is a study of the acquisition of ISS by funds advised by EQT Partners and Goldman Sachs Capital Partners. The objective in this thesis is twofold. Firstly, a valuation of ISS on the date of the IPO in March 2014 is performed, and secondly an analysis of the value creation during the holding period, 2005-2014, is conducted. The key target of this thesis is to estimate the fair Enterprise Value as of March 13, 2014 through a weighted average of value estimates from a DCF-analysis and different Enterprise Value multiples, respectively. With ISS’ strategic position and historical performance as a starting point, the expected future earnings and cash flow generation was forecast, resulting in a fair Enterprise Value of DKK 52.164 million. Of this figure the fair value of equity comprises DKK 28.087 million, corresponding to a fair, hypothetical, offer price of approximately DKK 207 per share at the IPO. At the acquisition in 2005 the purchase price of DKK 22.067 million was funded with an equity contribution of DKK 7.693 million by the Private Equity funds. Assuming a hypothetical full exit at the IPO, at the estimated fair value, the IRR, from the perspective of the Private Equity funds, is derived to be approximately 12% which is in the very low end of the expected return in the Private Equity industry. The purpose of the second part of the thesis is to analyse how value has been created or destroyed during the holding period based on the calculated IRR. The centerpiece of the value generation is EBITDA-growth which represents slightly more than 63% of the value creation. However, this EBITDA-growth is driven only by growth in revenue, primary through acquisitions. As opposed to many other LBO-cases the Private Equity funds have not been able to improve the operational performance in ISS as illustrated by the negative development of the EBITDA-margin. Furthermore the debt in ISS has not been repaid during the holding period, rather it has increased to a higher level, resulting in a negative contribution to value generation. Besides EBITDA-growth leverage effect has played an important part representing more than 38% of the total value creation. Value generation is analysed at previous exit attempts in 2011. The highest attainable return could have been reached had EQT and GSCP accepted the takeover offer from Apax in the beginning of 2011.

UddannelserCand.merc.fir Finansiering og Regnskab, (Kandidatuddannelse) Afsluttende afhandling
Antal sider148