In 2019, an entrepreneur over the age of 75, whose children held senior positions within the company, engaged Winnerge to carry out a valuation based on 2018 financials. At that stage, it was recommended to postpone launching a sale process, as the digital assets under development had not yet demonstrated their full value.

In 2023, four years later, a new valuation requested by the entrepreneur and his children confirmed the initial expectations: the investments in digital assets had delivered positive results and increased the company’s value. Consequently, Winnerge updated the valuation and actively supported the negotiation process, which was successfully concluded at the target values.

Following the agreement, the entrepreneur’s children saw their experience and expertise formally recognized, securing key managerial roles in the company’s development within the group, with a long-term perspective.

The entrepreneur granted the mandate, requiring a minimum Equity Value for the 100% sale of shares, which the current company margins, inclusive of all compensation and benefits associated with the entrepreneur, would not have allowed to achieve.

Thanks to Winnerge, a strategy was adopted to simplify the entrepreneur’s role, adjusting the market value to the company’s limited size. This approach revealed the true value of the company, highlighting the worth of the efficient business model designed by the entrepreneur, focused on customer service, quality, and the resulting consistent positive cash flow generation.

This analysis facilitated the valuation of the company for a third-party investor, identified by Winnerge, structuring the transaction based on both the company’s value and the contribution of a remunerated, but time-limited, involvement from the entrepreneur. This ensured professional continuity and financial independence from the company once the sale was completed.

The company comprised two operational units. The first, focused on a traditional business in a prolonged maturity phase, accounted for 80% of the revenue. The second, rapidly growing despite representing only 20% of the revenue, contributed 70% of the projected EBITDA. A potential buyer expressed interest in the growing unit, and the owners were inclined to accept the offer.

Winnerge assisted the entrepreneurs in:

• Selling the entire company at a “market average” multiple, despite the traditional business unit being valued at a negligible multiple.
• Securing a well-compensated, long-term managerial role for both founding partners.
• Ensuring that the exiting entrepreneur retained institutional roles built over time within the industry association representing the sold company.

The entrepreneurs requested a minimum Equity Value of 3.5 million euros for 100% of the shares.

Winnerge assisted by separating the real estate assets, cash, and Enterprise Value, and identified a potential buyer.

The entrepreneurs achieved an Enterprise Value of 1.1 million euros, to which the available cash was added, resulting in total cash reserves of 0.9 million euros, raising the total Equity Value to approximately 2 million euros.

They retained ownership of the real estate, valued at about 2.4 million euros, with a guaranteed gross yield of 5% on the property.

The total value generated for the entrepreneurs was 4.4 million euros, representing a 26% increase over the initially estimated value.

The company, part of a corporate group, consisted of two divisions:

• E-commerce Service Provider, accounting for 75% of the business volume.
• Incentive Branch, contributing 25% of the business volume.

By the end of 2021, the group needed to monetize a non-strategic asset.

With Winnerge’s assistance, the value of the Incentive asset was maximized and then sold for cash.

In early 2022, the branch was sold for a total of 1.45 million euros, with 1.25 million euros received in cash.

The entire subsidiary had been acquired in 2019 for 2.6 million euros through the issuance of new shares.