PRIVILEGE EQUITATION : revenue, balance sheet and financial ratios

In 2025, PRIVILEGE EQUITATION achieves revenue of 2.7 M€. Activity remains stable over the period (CAGR: -0.4%). Slight decline of -8% vs 2024. After deducting consumption (1.4 M€), gross margin stands at 1.2 M€, i.e. a rate of 45%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 159 k€, representing 6.0% of revenue. The operating margin remains fragile, requiring cost vigilance. Net income is negative at -161 k€ (-6.1% of revenue), which will impact equity.

The debt ratio (= Financial debt / Equity x 100) stands at 80%. Debt level is high: negotiating margin with banks is reduced. Financial autonomy (= Equity / Total assets x 100) reaches 44%. 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 3.4 years of cash flow to repay all financial debt. This ratio remains within usual banking standards. Cash flow represents 5.7% 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 333.82. 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 14.6x. Operating income very largely covers interest expenses: high safety margin.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 103 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 18 days. The gap of 85 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 170 days (= Average inventory / Cost of goods x 360). This high level ties up cash and potentially creates obsolescence risk. Overall, WCR represents 296 days of revenue, i.e. 2.2 M€ to permanently finance. Over 2017-2025, WCR increased by +35%, requiring additional financing.

Based on 145 transactions of similar company sales (all years), the value of PRIVILEGE EQUITATION is estimated at 449 095 € (range 201 255€ - 1 212 596€). With an EBITDA of 158 867€, the sector multiple of 2.6x is applied. The price/revenue ratio is 0.19x (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.