Case Study: Financial Opinion Services

Collateral Valuation Opinion - M&A Transaction

Our Client

A U.K. privately owned manufacturer/distributor (the "Company") seeking to complete a $125+ million acquisition of a U.S. company (the "Target") that possessed a strong complementary intellectual-property based asset pool ("asset-pool").

Situation

The Target was not represented by an investment bank, and it had not developed reliable forecasts to facilitate the completion of the due diligence desired by the Company and its prospective lenders to consummate the acquisition in a timely manner. As a result, the Company's investment banker could not secure the $100+ million credit facility to close the transaction without an independent valuation of the asset pool for distribution to the bank syndicate.

Key Issues/Services

Working directly with the Target's management team to develop detailed forecasts for the asset-pool while negotiations with our client were ongoing
Assisting the Company, its investment banker and their attorneys in devising structuring elements to mitigate acquisition and lending risk
Providing independent and credible financial advice to our client, and for the use of the lenders, while being respectful of the prior advice and efforts of the Company's investment banker
Assisting the agent bank in syndicating the loan among a broad group of lenders by explaining, from an independent and objective standpoint, the risk/return characteristics of the asset-pool and debt-structure

The Salter Group's Role & Outcome

We rendered the collateral valuation opinion in a timely manner.
The Company acquired the Target with strong support from a large bank syndicate.

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