Value Driver Digest
First Edition 2022
Congratulations to Stout ambassador Sam Ryder for his hole-in-one at the Waste Management Open on February 12th!
Value Driver Digest Pulse Survey
Insights
In Focus
- IFRS vs U.S. GAAP – Are You Ready for Impairment Testing?
- 10 (More) Issues to Consider When Valuing Legal Entities
- Should You Revisit Insured Property Value Estimates?
- Understanding the Effects of COVID-19 on Valuation Processes
- 5 Steps for Private Funds as SEC Ramps Up Oversight
What's Trending
- Detecting Ponzi Schemes and Financial Fraud in Real Estate Investments
- Leading Women at Stout: Kim Randolph and Stacy Carron
- A Fireside Chat with Kevin Depew, Deputy Chief Economist and industry eminence program leader at RSM
- How CFO's Can Leverage RPA Software to Automate Invoice Processing
- SPAC Warrants as Liability Called an Expensive class
Corporate News
Stout is pleased to be recognized again as a top fairness opinion advisor by Refinativ's Global Mergers & Acquisitions Review. In 2021, Stout ranked second in the United States and third globally. Since 2012, Stout has consistently ranked as a top fairness opinion provider by Refinitiv.
Methodical, a valuation and financial advisory firm specializing in the structured products market, has joined Stout. The addition of Methodical strengthens Stout's valuation capabilities in the financial services industry through Methodical's product knowledge and technical expertise in consumer lending, financial-technology, residential mortage investments, and securitized products.
Stout has signed multi-year sponsorship agreements with LPGA Tour players Lizette Salas and Lauren Stephenson. Both players will wear the Stout logo when they begin the 2022 season and join existing Stout brand ambassadors, PGA Tour player Sam Ryder and professional tennis player Steve Johnson.
Stout has added its newest office in Miami and now has 24 offices globally.
You can read more about our accomplishments in Stout's annual report.
Industry Update: Plastics
There were 522 plastics industry M&A transactions in 2021, a 41% increase from 2020. Plastics M&A activity in 2021 represented the highest annual total in the Stout proprietary database with 173 transactions in Q4 2021, a 33% increase from the previous quarterly high of Q4 2016.
Key Themes & Macro Trends
- Record breaking M&A activity in 2021, largely driven by private equity
- Potential tax law changes drove a race to close deals by the end of 2021
- Positive momentum heading into 2022 with strong buyer demand and access to capital
- Continued interest in plastics companies across all processes and end markets, particularly in the U.S. market
- Improved company performance in many plastics sectors, despite numerous operational challenges
- Emerging secular trends positively impacting the plastics industry and strong industry tailwinds in many end market segments
- Strong financing environment and overall cost of capital continues to be low
- Mixed results in key macroeconomic indicators, with inflation seeing its biggest increase in years