ALLIANCE MULTI SERVICES : revenue, balance sheet and financial ratios

In 2023, ALLIANCE MULTI SERVICES achieves revenue of 1.5 M€. Over the period 2016-2023, the company shows strong growth with a CAGR (compound annual growth rate) of +15.1%. Vs 2022, growth of +50% (1.0 M€ -> 1.5 M€). After deducting consumption (173 k€), gross margin stands at 1.4 M€, i.e. a rate of 89%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 91 k€, representing 6.0% of revenue. Warning negative scissor effect: despite revenue change (+50%), EBITDA varies by +2%, reducing margin by 2.8 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 69 k€, i.e. 4.5% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 70%. Debt level is high: negotiating margin with banks is reduced. Financial autonomy (= Equity / Total assets x 100) reaches 25%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 3.4 years of cash flow to repay all financial debt. This ratio remains within usual banking standards. Cash flow represents 3.6% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 169.87. 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 3.6x. Financial charges are adequately covered by operations.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 134 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 93 days. The gap of 41 days means the company finances its customers for over a month before being paid relative to supplier payments. This weighs on cash flow. Inventory turnover is 1 days (= Average inventory / Cost of goods x 360). Fast turnover, sign of good inventory management. Overall, WCR represents 167 days of revenue, i.e. 706 k€ to permanently finance. Over 2016-2023, WCR increased by +1143%, requiring additional financing.

Based on 113 transactions of similar company sales (all years), the value of ALLIANCE MULTI SERVICES is estimated at 250 067 € (range 108 980€ - 536 788€). With an EBITDA of 90 672€, the sector multiple of 3.6x is applied. The price/revenue ratio is 0.11x (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.