Product details

Meddeal Private Limited (MPL) is a company in the medical devices Industry and supplies medical consumables to small hospitals, clinics and laboratories. The company earns revenue as a percentage of Gross Merchandise Value. The company has an existing customer base, and acquires new customers through its medical representative. With five years into operation, the company turned profitable in recent years. The founder of the company Shyam gets an offer for stake dilution of 10% shares of his company from a party for INR8 million and he wants to value the business to see if the offer price is reasonable. He approaches a consulting company and explains the business to the valuation expert, Diwakar. After analysing the industry and the series of drivers of valuation such revenue model, cost, working capital, capital expenditure and capital structure, Diwakar is in the process of valuing the business using discounted cash flow method to advise on the valuation of MPL. This case is suitable for learning free cash flow to equity method, and the drivers that determine the value of the business. The case comes with two types of excel supplements for the students, the first one where students can start the model from the scratch and the second type where the links are already mapped to the projected financial statements and it is easy to practice the model-building exercise.