A large real estate services, investment and owner sought to pursue a significant Regulation D debt offering to refinance existing debt and obtain growth capital. The company provides property management, asset management, and holds investments in various real estate property types. Assets under management exceeded $10 billion. Given the company’s broad investment and service areas and the resulting complexity of its financial reporting, its board sought an independent valuation of the company’s net asset value as one component of their assessment of the proposed financing.
The board of directors engaged Stout to determine the fair value of the company’s net assets. We conducted an extensive valuation analysis that included valuing the company’s service and investment business lines and its interests in real properties by property type. Stout presented its results to the board of the company.
Our valuation results were accepted by the board, which authorized the company to proceed with the contemplated financing. The financing was completed by the company and its advisors, and the company used a significant portion of the proceeds to make acquisitions to expand and diversify certain of its assets and activities. The financing is considered one of the seminal events in the company’s history.