Aggregate Consideration of an Investment - Fairness Opinion

An institutional investor sought Stout’s expertise in providing buy-side transaction advice related to an insurance company in Asia. Stout was engaged to provide a transaction opinion regarding the value of the aggregate consideration and the merits of the investment.

Our due diligence included a thorough review and analysis of the target company’s business, operations, financial condition, future prospects and projected operations and performance. We employed a discounted cash flow approach to analyze the company’s projected performance; in addition, we analyzed, the trends and opportunities in the industry, comparable M&A deals, and trading multiples for companies we deemed comparable to the target. Stout also stress tested the financial model and return assumptions, and presented alternate cases.

The client has been satisfied with the investment in the company and it is exceeding the financial plan to date.

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