Inhouse Day Deloitte (NL)

Note: Fluency in Dutch is required and the dresscode for this event is business casual.

Location: Amsterdam

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Sunny Auction is a Dutch e-commerce company with an online auction platform for leisure packages such as vacations, cruises, events, and wellness. The owners want to sell the company. Deloitte conducted a seller due diligence and provided several information files and a financial model to potential buyers.

A potential strategic buyer commissioned an acquisition study. This study focuses primarily on the financial figures, recurring profitability (normalized EBITDA), and adjusted net debt. The historical figures show modest revenue growth and an improvement in gross margin, partly due to changes in the product range and efficiency measures.

Management wants to generate additional revenue by investing in the IT platform; that project is already planned and should increase sales capacity. There is a risk, however, because a large part of the revenue comes from a small group of partners. One partner went bankrupt and left behind a doubtful claim. There is a payment dispute with another partner that has led to a lawsuit and may result in additional costs.

The results also include several one-off items, such as fines or penalties, marketing deviations, subsidies, and write-offs on old IT projects. These items affect the reported profit and are excluded from the analysis in order to determine the actual operating result. The balance sheet shows a lot of cash, but there are also existing loans and planned additional financing for investments. A DCF method was used for the valuation, with separate scenarios with and without synergies. The results provide guidelines for a binding offer and the negotiation strategy.