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Case study

We evaluated Graanul Invest's factories in Estonia, Latvia and Lithuania

In autumn 2019, Graanul Invest AS contacted Grant Thornton Baltic for the purpose of valuation of pledged assets.

Graanul Invest OÜ is Europe’s largest pellet producer and one of the biggest renewable energy producers in the Baltic Sea region. In Estonia, Graanul Invest OÜ is one of the largest private forest owners. In the Baltic states, the group owns 11 pellet plants and six co-generation plants.

Grant Thornton Baltic conducted a valuation of the assets of Graanul Invest OÜ, which are pledged to Luminor Bank AS, i.e. property together with pellet factories and energy co-generation plants in Estonia, Latvia and Lithuania.

The income approach

Considering that in this instance, the assets being valued formed separate business units necessary for production (immovables and factories), the income approach was used.

To perform the valuation of the business units, Grant Thornton’s advisers divided the group’s assets into separate business units. The Estonian and Latvian valuation teams then performed on the spot inspections and talked to the heads of the factories to learn about the condition of the plants. The technical data and production capacity of each plant was taken into consideration in the case of each business unit in order to determine the cash flow generated by the specific unit. To determine the market value of the real estate and the movable property, the cash flows related to other tangible and intangible assets were excluded from the business unit’s cash flow (labour costs, changes in working capital and entrepreneurship).

Grant Thornton Baltic’s advisory service team was led by Aleksandrs Vellers, the head of Grant Thorton’s Latvian valuation and business advisory department and Latvian leading partner Dainis Tunsts. A major contribution came from our financial advisors and appraisers Raimonds Dommers, Ants Ansper, Raili Ilves, Christopher Roosla, Liisa Gross and Rain Roball.


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