Value of Pre-Owned Consumer Electronics Recycling Platform
Valtech’s valuation team has recently completed a valuation engagement for a fast-growing pre-owned consumer electronics recycling platform. The client is a rapidly growing player in the circular economy, offering a platform that facilitates the trade-in, refurbishment, and resale of pre-owned consumer electronics such as smartphones and laptops. The platform’s commitment to sustainability and innovation in reducing electronic waste has fuelled its exponential growth. We pride ourselves on delivering tailored, accurate valuations that reflect the unique nature and growth potential of our clients’ businesses.
Applying Guideline M&A Method
Given the company’s fast growth and lack of many publicly traded comparables, we opted to use the Guideline M&A Method as the primary approach to value the business. We conducted in-depth researches, identified and analyzed recent mergers and acquisitions (“M&A”) within the circular economy and technology recycling sectors. This method allowed us to draw comparisons based on transaction data from companies with similar business models and growth trajectories, providing a more relevant benchmark than traditional public company comparisons.
When applying the Guideline M&A Method, we also utilized Gross Merchandise Value (“GMV”) multiples drawn from comparable M&A deals. This allowed us to anchor the valuation not just on revenue or earnings, but on the overall scale of platform activity. This provided a more accurate reflection of the company’s value in a rapidly evolving market, especially where traditional valuation metrics might fall short.
By utilizing the Guideline M&A Method, we were able to provide our client with an accurate and nuanced valuation that reflects both their current market position and their future growth potential. This engagement underscores our ability to adapt valuation methodologies to the specific needs of fast-growing companies in emerging industries.
About Valtech Valuation
Valtech Valuation is a professional valuation firm accredited with ISO-9001 in valuation advisory services. The firm is renowned for its expertise in advanced valuation techniques, customized valuation models, data-driven insights, and adherence to compliance and reporting standards. The firm has a solid track record in valuation advisory for listed companies, private equity, fund managers, and financial institutions. Valtech’s qualified team comprises members with PhDs, CPA (HKICPA), CFA, Chartered Valuation Surveyors of the Royal Institution of Chartered Surveyors, and valuers accredited with Business Valuation (ABV) by AICPA and CVA qualifications in Singapore. Valtech continues to expand into more markets by leveraging its valuation platform and recruiting local experts.
