Practical guides : Buy-side, Sell-side, and Financing.

Three main families of methods coexist: the asset-based approach (adjusted net asset value), the cash-flow approach (DCF) and the analogical approach using multiples (comparison with comparable transactions or listed companies). In practice, several methods are combined to establish a value range.

The LOI (Letter of Intent) formalises a buyer's interest and the main terms of the project: indicative price, scope, timeline, exclusivity and conditions precedent. Generally non-binding on the final price, it frames the due diligence before signing the definitive agreement.

An SPV (Special Purpose Vehicle) is a structure created to carry a buyout transaction. It allows the acquisition debt to be ring-fenced, several investors to be brought together and the structure to be optimised through leverage (LBO).

Financing a buyout generally combines equity contributions, bank debt (senior debt), sometimes mezzanine debt and a vendor loan. The structure often relies on leverage through an SPV. The choice depends on the size of the deal, the target's repayment capacity and the buyers' profile.

Factoring allows a company to assign its invoices to be paid immediately. Reverse factoring is initiated by the buyer: it allows its suppliers to be paid quickly while preserving its own cash flow. Both finance working capital needs.