ALLIANCE MANAGEMENT : revenue, balance sheet and financial ratios

In 2024, ALLIANCE MANAGEMENT achieves revenue of 4.2 M€. Revenue is growing positively over 9 years (CAGR: +0.4%). Slight decline of -9% vs 2023. After deducting consumption (0 €), gross margin stands at 4.2 M€, i.e. a rate of 100%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 312 k€, representing 7.4% of revenue. Warning negative scissor effect: despite revenue change (-9%), EBITDA varies by -43%, reducing margin by 4.4 pts. This reflects costs rising faster than revenue. The operating margin remains fragile, requiring cost vigilance. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 232 k€, i.e. 5.5% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 2%. This very low level reflects a solid financial structure, offering significant room for future investments or acquisitions. Financial autonomy (= Equity / Total assets x 100) reaches 66%. This high autonomy means the company finances most of its assets through equity, a sign of strength. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 0.2 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 5.3% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment. Satisfactory level allowing partial financing of growth.

The liquidity ratio (= Current assets / Current liabilities) stands at 291.97. Concretely, the company has €2 of liquid assets for every €1 of short-term debt: no cash risk within 12 months. The interest coverage ratio (= EBIT / Interest expenses) is 0.4x. Danger: operating income does not cover interest charges, unsustainable situation.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 88 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 105 days. Favorable situation: supplier credit is longer than customer credit by 17 days. Overall, WCR represents 125 days of revenue, i.e. 1.5 M€ to permanently finance. Over 2016-2024, WCR increased by +125%, requiring additional financing.

Based on 120 transactions of similar company sales (all years), the value of ALLIANCE MANAGEMENT is estimated at 790 111 € (range 387 910€ - 2 069 893€). With an EBITDA of 312 090€, the sector multiple of 2.2x is applied. The price/revenue ratio is 0.27x (conservative valuation). This multiples method compares the actual sale price of similar companies to their financial indicators (Revenue, EBITDA, Net Income). It provides a market-based indicative estimate.