In this pitch deck, analysts Oscar Fredell and Emilian Rehnström deliver a comprehensive analysis of Balco Group, the leader in the balcony industry in the Nordics, emphasizing its business model, market position, and financial health. Utilizing various valuation methods such as DCF and LBO models, the analysts derive a target valuation of SEK 1200 – 1600m. The following section includes a selection of assumptions underpinning this valuation, and highlights some of the insights from which the investment considerations were made.
Key takeaways:
- Balco Groups product strategy, the “Balco Method” allows for steadier revenue streams and makes Balco Group less cyclical then its competitors.
- Using a Buy & Build strategy Balco Group has seen consistent top-line growth, making the Company an attractive target for potential financial sponsors.
- The Nordic balcony market has between 2018-2022 grown at an 8% CAGR, staying resilient despite a worsening macroenvironment, underpinning the resilience of the Balco Groups topline.