Publicação
Basf wintershall dea divestment: valuation & exit analysis in a geopolitically challenging environment - a portfolio approach to understanding environmental dynamics in the oil and gas sector
| Resumo: | This paper investigates both the theoretical framework and real-world applications of valuing a private company, particularly in the context of divesting. The research examines Wintershall DEA, a privately owned oil and gas company. It gains relevance in light of BASF's intention to divest its stake in Wintershall DEA. For establishing a fair purchase price, the paper employs both intrinsic and relative valuation methods to establish a valuation range. Key findings are: (1) Industry-specific variations influence intrinsic valuation approaches, (2) Peer comparison in E&P is subject to increased complexity, (3) Macroeconomic and geopolitical instabilities increase corporate valuation volatility, (4) Strategic exit options are influenced by market conditions and timing. Besides, companies achieving high environmental scores, like Wintershall DEA, are perceived as less risky and show better portfolio performance, potentially leading to higher valuations and investor appeal. |
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| Autores principais: | Schroeder-Wildberg, Justus Paul |
| Assunto: | M&A Valuation Oil and gas Corporate finance |
| Ano: | 2024 |
| País: | Portugal |
| Tipo de documento: | dissertação de mestrado |
| Tipo de acesso: | acesso aberto |
| Instituição associada: | Universidade Nova de Lisboa |
| Idioma: | inglês |
| Origem: | Repositório Institucional da UNL |
| Resumo: | This paper investigates both the theoretical framework and real-world applications of valuing a private company, particularly in the context of divesting. The research examines Wintershall DEA, a privately owned oil and gas company. It gains relevance in light of BASF's intention to divest its stake in Wintershall DEA. For establishing a fair purchase price, the paper employs both intrinsic and relative valuation methods to establish a valuation range. Key findings are: (1) Industry-specific variations influence intrinsic valuation approaches, (2) Peer comparison in E&P is subject to increased complexity, (3) Macroeconomic and geopolitical instabilities increase corporate valuation volatility, (4) Strategic exit options are influenced by market conditions and timing. Besides, companies achieving high environmental scores, like Wintershall DEA, are perceived as less risky and show better portfolio performance, potentially leading to higher valuations and investor appeal. |
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