Selection and evaluation criteria for target companies by private equity funds: analysis applied to a real case study

Identifier:  TFG:10211

Handle: https://hdl.handle.net/20.500.11797/TFG10211

Authors:  Vericat Batalla, Pol

Abstract:
This study examines the criteria private equity funds apply to target selection and applies them to Grifols. The framework combines a qualitative and quantitative screening, alongside four valuation methodologies. Grifols passes the criteria screening but is constrained on financial profile and governance: pre-existing 4-5x leverage and a dual-class ownership compress the standard buyout levers. The triangulation defines a 14-21€ convergence band per Class A share and supports a viable but conditional verdict subject to six joint operating, financing, and governance conditions.