PFAL was engaged to preform an independent valuation for the acquisition of a stake in one of largest power generating companies in the world. The role included assessing the competitive and strategic positions of the target company and evaluating its revenue generative potential in light of significant planned expansion and advantageous government subsidies. PFAL assessed the primary value drivers and critical risk factors that could impact the company’s growth. For the quantitative valuation PFAL assessed the enterprise value and equity value using a discounted cash flow methodology and provided sensitivities on the valuation based on defined scenarios and risk factors (e.g. revenue, operational expenditure & capital expenditure, and inflation, WACC, currency and growth rates etc.). PFAL also provided a recommendation and key considerations for the acquisition and negotiation strategy.