- Very high initial investment and long ownership period.
- Fixed-asset nature with assets being hard or impossible to move or repurpose.
- Subject to important internal factors such as government regulation, supply-demand factors and supporting infrastructure.
- Potential for restrictions on expansion and ability to meet customer needs.
- Few, large customers that are increasingly consolidating.
- Limited relevance of peer-multiples due to low number of deals in many sectors and deals often not being comparable.
We approach valuation with humility and awareness of the uncertainties. While we understand the need for precision and actionable outcomes we seek to apply our industry experience to leave no stone unturned.