The French Autorité des Marchés Financiers (Financial Markets Authority) compels all companies targeted by an IPO the appointment of an independent expert when :

 The public offering can generate a conflict of interest,
 The public offering can detract equality among shareholders,
 The issuer achieves a capital increase with a strong share value discount.

An independent evaluation company since 1983, Sorgem Evaluation has applied a strict methodology to address these issues:

Step1 : Sorgem Evaluation is appointed either by a board of administrators or by a member of the supervisory board.

Step 2 : Sorgem Evaluation receives:

• Its letter of assignment,
• The business plan of the targeted company,
• All relevant information necessary to the company’s assessment, such as all valuation work performed by the banks submitting the public offering, sets of data enabling the appraisal of the expected synergies…

Step 3 : Sorgem Evaluation sets up its multi-criteria approach:

Here are the main methods used by the expert:

• An analogical approach in which the value of the company is determined by comparing its value to those of similar companies,
• An Intrinsic approach in which the value of the company is assessed from its profitability, its risk with the use of the discounted cash flow and net asset value methods…

Sorgem Evaluation will always be in a position to explain the reasons why it gave priority to one method upon another.

The evaluation results can always be compared to:

• The assets’ book value,
• The company’s value on the stock exchange
• The transactions on the company’s stock…
• …

Step 4 : Sorgem Evaluation sends a draft of the report and exchanges comments with the company’s management.

Step 5 : Report’s final draft.

We helped them :

 Alti, Eramet, Moneyline, Société de Tayninh...