Stout was engaged by the board of directors of a leading supplier of consumer and professional housewares to the retail, foodservice, and hospitality sectors. The company was considering selling certain assets composing its foodservice division to a different portfolio company held by the same private equity firm. Stout was engaged to render an opinion to the board with respect to the fairness, from a financial point of view, of the consideration to be received by the company pursuant to the proposed sale of the foodservice division.
We performed an independent valuation analysis of the foodservice division using both projected cash flows via a discounted cash flow analysis and trading multiples of publicly traded companies and recent mergers and acquisitions of similar companies. Our findings were presented to the board of directors to provide it with analysis in connection with its approval of the transaction.
Our analyses, due diligence, and presentation provided our client with information that it used in arriving at its decision to approve the company’s sale of one of its divisions to another of the private equity firm’s portfolio companies.