Case Study: Financial & Strategic Advisory Services

Transaction Support for Capital Raising and M&A Efforts

Our Client

One of the largest public works contractors in the U.S., in both the civil and building industry, with a specialty in large and complex projects (ranging in size from $25 million to $1 billion) such as health care, education, municipal, commercial, and entertainment facilities, and highways, bridges, tunnels, transit facilities, railroads, ports and harbors, aviation facilities and water and wastewater projects

Situation

The company was a highly successful family-run business, and its controlling shareholders requested that The Salter Group provide financial and strategic advisory services to the company in connection with a potential financing, sale transaction, merger or IPO. Specifically, we were directed to work with the company's CEO, CFO and key operating segment teams to "translate" the company's business operations, market segment, value and other related matters in a format customary for use by investment banking firms, underwriters and prospective transaction participants.

Key Issues/Services

Performing extensive industry research by construction project type and geographic region to assess the company's growth prospects
Identifying comparable public companies to facilitate a substantive discussion with the CEO regarding the company's competitors and relevant differentiating factors
Contrasting the company's strengths and operating constraints (e.g., resource constraints to securing future projects) against its competitors
Assisting management in preparing detailed financial forecasts on an as-is and pro-forma basis giving consideration to (i) historic revenues, (ii) construction projects currently in process and any upcoming construction projects identified by the company, (iii) potential growth by industry sectors and geographic regions, and (iv) the consummation of acquisitions of complementary businesses or competitors
Utilizing the income and market approaches to assess the company's fair market value (based on its current operating and capital resources) and its pro-forma value (giving consideration to the added financial resources arising from a potential transaction, coupled with expanded operating resources based upon one or more potential strategic acquisitions)
Preparing presentation materials for distribution to prospective investors, investment banking firms and underwriters
Explaining the financial forecasts and associated forecast support, along with our valuation indications, to the investment banks and underwriters

The Salter Group's Role & Outcome

The investment banking firms and underwriters supported our methodologies and valuation indications in their expressions of interest to represent the company in a financial transaction.
The company signed a definitive agreement to merge with one of its public competitors.

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