Integrated forestry business valuation

Guys,

How would you approach valuing an integrated forestry business? The business has got timberland as well as a number of saw mills. I'm thinking of using a "hybrid" approach, valuing the timberland using a version of DCF and the saw mill operations using market multiples. Problem is, getting comp sets for the saw mill operations is a little tricky. I have struggled to find pure play public saw mill businesses, the ones i've seen all have some timberland. I think it would be incorrect to use these comp sets to value the saw mill business only, as clearly some value from the timberland has been factored into these multiples.

This valuation is for an investment holding concern. The forestry business has operations in Asia and Africa.

Your thoughts are welcome and appreciated.

Cheers!

1 Comments
 

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