Stout served as the exclusive financial advisor to a $3 billion global leader in the rigid plastic packaging and recycling industries with more than 40 production sites across the globe with operations throughout North America, South America, Europe, Africa and Asia. Stout was engaged to advise the board of directors in connection with a stock redemption transaction.
Our analysis primarily relied on the projected cash flows of the company, and included the analysis of trading multiples and recent mergers and acquisitions of similar companies. We determined the ability of the company to fund its continuing operations and to meet debt service obligations of the post-transaction capital structure. Our work also included a sensitivity analysis with several purposes: provide management with a sense of the company’s ability to continue satisfying debt obligations; and operate the business without undue stress in the event of unexpected turbulence that would result in lower-than-expected future cash flows. We delivered an opinion to the board of the company, providing information to enable the board to recommend proceeding with the transaction.