TRP ACQUISITION I : revenue, balance sheet and financial ratios

In 2024, TRP ACQUISITION I achieves revenue of 1.5 M€. Revenue is declining over the period 2023-2024 (CAGR: -42.7%). Significant drop of -43% vs 2023. After deducting consumption (0 €), gross margin stands at 1.5 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 798 k€, representing 55.0% of revenue. Positive scissor effect: EBITDA margin improves by +10.0 pts, sign of improved operational efficiency. This high EBITDA margin provides strong self-financing capacity and resilience to uncertainties. Ultimately, net income (= EBIT +/- financial result +/- exceptional - corporate tax) amounts to 274 k€, i.e. 18.8% of revenue. This profit can be retained or distributed to shareholders.

The debt ratio (= Financial debt / Equity x 100) stands at 1474%. Critical situation: debt significantly exceeds equity, severely limiting borrowing capacity and exposing the company to default risk. Financial autonomy (= Equity / Total assets x 100) reaches 6%. Low autonomy: the company heavily depends on external financing (banks, suppliers). Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 16.2 years of cash flow to repay all financial debt. Beyond 7 years, banks generally consider credit risk as high. Cash flow represents 24.8% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment. This high level provides strong self-financing capacity.

The liquidity ratio (= Current assets / Current liabilities) stands at 317.52. 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 55.4x. 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: 395 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 119 days. The gap of 276 days means the company finances its customers for over a month before being paid relative to supplier payments. This weighs on cash flow. Overall, WCR represents 306 days of revenue, i.e. 1.2 M€ to permanently finance.

Based on 169 transactions of similar company sales in 2024, the value of TRP ACQUISITION I is estimated at 2 959 043 € (range 837 939€ - 5 320 571€). With an EBITDA of 798 205€, the sector multiple of 5.6x is applied. The price/revenue ratio is 0.81x (in line with sector norms). 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.