Navigating growth
: a strategic deal proposal for Ferretti Group's acquisition of Fountaine Pajot

  • Giulia Faravelli (Student)

Student thesis: Master's Thesis

Abstract

This dissertation analyses the potential acquisition of Fountaine Pajot by Ferretti Group, a leading player in the luxury yacht industry. Ferretti aims to expand its product portfolio and market reach through a combination of organic growth and strategic mergers and acquisitions. Fountaine Pajot, a key producer of premium multihull yachts with a focus on eco-friendly innovation, aligns well with Ferretti’s strategic goals. The study includes a detailed analysis of both businesses, their market positioning, and the luxury yacht sector, alongside an in-depth valuation of Ferretti and Fountaine Pajot as separate entities and as a combined group post-acquisition. The objective is to evaluate whether the acquisition will create value for Ferretti’s shareholders, based on strategic fit and financial performance. The analysis recommends a 50% acquisition premium, driven by a current market undervaluation of Fountaine Pajot’s growth potential and by the attainable synergies resulting from the operation, which are estimated at €246.3 million. The combined entity is valued at approximately €1.5 billion. However, to ensure value creation, Ferretti must manage the integration carefully to realize these synergies. Given these factors, the dissertation suggests negotiating the acquisition at a premium that accounts for Fountaine Pajot’s undervaluation, while also recommending an all-cash deal to minimize risk and ensure optimal outcomes for Ferretti’s shareholders.
Date of Award22 Oct 2024
Original languageEnglish
Awarding Institution
  • Universidade Católica Portuguesa
SupervisorAntónio Borges de Assunção (Supervisor)

Keywords

  • Mergers & acquisitions
  • Valuation
  • Luxury yacht industry

Designation

  • Mestrado em Finanças (mestrado internacional)

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