Valuation report · Building Materials
Binh Minh Plastics
BMP valuation distinguishes financial-sponsor affordability from strategic control value.
Fact file
- Price used
- VND 135.2k
- Price date
- 11 Jun 2026
- Model date
- 11 Jun 2026
- Methods
- Precedent Transactions · LBO
- Files
- 2 workbooks
Dated figures This model was last updated on 11 Jun 2026, 121 days before this page was built. Prices, estimates and peer multiples have not been refreshed since, so the implied moves below compare against the 11 Jun 2026 price, not today's.
Valuation range
Precedent
≈152.8k
+13.0%
Precedent: 152.8k; +13.0% versus 135.2kLBO
142.0k
+5.0%
LBO: 142.0k; +5.0% versus 135.2kBars are ranges; a heavy tick is a point estimate; a gap inside a bar marks the base case. Percentages compare each method's base case or midpoint with the 135.2k price the model used on 11 Jun 2026.
| Method | Value | vs price |
|---|---|---|
| Precedent Selected 13.0% median control premium | ≈152.8k | +13.0% |
| LBO Sponsor offer at 20.1% IRR, 2.50x cash return | 142.0k | +5.0% |
- Precedent output · Approx. VND 152.8k/share
- The selected 13.0% control premium produces the higher strategic/control-value indication.
- LBO output · VND 142.0k/share
- The sponsor case supports a modest premium offer while maintaining the template 20.1% IRR and 2.50x cash return.
- Valuation spread · Approx. VND 10.8k/share
- This spread is the control-value story: a strategic buyer can justify a higher price than a financial sponsor can underwrite.
Executive view
BMP is valued with precedent transactions and an LBO because the relevant question is control value. A sponsor or strategic buyer would underwrite entry price, leverage capacity, operating durability, and exit multiple rather than only current trading multiples.
The two methods should not converge to the same number. The LBO is a financial-buyer affordability test. It asks what a sponsor can pay while still meeting a target IRR and cash-on-cash return. The precedent transaction check is a control-value test and can sit higher if strategic buyers pay for synergies, market access, or scarcity value.
The model uses a modest 5.0% LBO premium to avoid overpaying in a sponsor case. The precedent check uses a higher 13.0% selected premium to reflect that control transactions typically clear above a financial buyer’s base case.
That spread creates a useful negotiation frame: VND 142.0k/share is the sponsor-disciplined bid, while roughly VND 152.8k/share is the higher control-value indication.
Key assumptions
- Precedent model
- Control-premium transaction analysis
- The precedent set uses transaction EV/Sales, EV/EBITDA, P/E, and premium paid. This is not a DCF or DDM.
- LBO model
- Sponsor-return model
- The LBO uses acquisition offer price, entry multiple, leverage, debt paydown, exit multiple, IRR, and cash-on-cash return.
- Control premium
- 5.0% in LBO; 13.0% precedent median
- The LBO premium is deliberately modest because a sponsor must still clear return hurdles. The precedent premium is higher because control transactions can include strategic rationale.
- Exit / return hurdle
- 7.5x exit EV/EBITDA; 20.1% IRR
- The sponsor case is rebalanced at a VND 142.0k/share offer value with entry EV/EBITDA around 7.4x.
- Why methods differ
- Precedent above LBO
- A strategic/control buyer can pay for synergies or platform value. A financial sponsor is limited by leverage capacity, financing cost, exit multiple, and required IRR.
Conclusion
BMP now shows a clear control-value spread: LBO is the financial-sponsor case at VND 142.0k/share, while precedent transactions imply a higher strategic/control value around VND 152.8k/share.
BMP should be read as a transaction case, not a simple public-market multiple case. The question is what type of buyer is setting the price.
If the buyer is a financial sponsor, the LBO value is the more relevant anchor because the sponsor must protect IRR, cash return, and debt capacity.
If the buyer is strategic, the precedent transaction output deserves more weight because the buyer may pay for distribution, market position, procurement synergies, or scarcity.
The final report should therefore show both numbers. Collapsing them into one value would hide the actual M&A negotiation dynamic.
Risks and checks
- 1 A lower exit multiple or weaker EBITDA path would compress the LBO offer quickly.
- 2 Sponsor financing terms, interest costs, and leverage availability can change the clearing price.
- 3 Precedent transaction samples can be stale or structurally different from BMP, so the premium output is a guide rather than a hard target.
- 4 A strategic premium is only defensible if the acquirer can realize synergies or strategic benefits; otherwise the precedent value may overstate clearing price.
- 5 PVC resin costs, construction demand, and margin stability are the operating variables that matter most for both transaction methods.
Model files
-
One-page tear sheet
PDF · 207 KB · A4
Outputs against the price used, key assumptions, conclusion and risks on one page. Printable web version.
-
Precedent Transactions
XLSX · 873 KB · 11 Jun 2026
Sheets: List, Output, ACQR;TRGT 1-10.
-
LBO
XLS · 422 KB · 11 Jun 2026
Sheets: Cover, TS, IS, BS, CF, DS, RA, A1, A2, A3.