Fairness opinion report | Valuation | Buy-side advisory

Business need

  • A Belgian digital printing company was looking to diversify into different business areas and expand to other European markets.
  • As part of its inorganic growth strategy, the client was looking to acquire a European software company developing software tools for labels and packaging and serving customers through a global network of distributors.
  • It mandated RocSearch to undertake a fairness opinion and valuation study for the target company.

To undertake a fairness opinion study and valuation for a target acquisition company.

The client outlined two key reasons for selecting RocSearch:

  • Our ability to rapidly deploy an experienced and highly pedigreed financial research team.
  • Our flexible client-centric engagement models.

Approach and Methodology

  • Our team of financial research experts carried out a detailed assessment of the software company’s business operations as well as its financial situation. We also dived into the value drivers and underlying assumptions made in the target company’s long-term plan, analysed its future outlook, existing competition and strategic partnerships.

For valuing the target company, we deployed a range of approaches such as discounted cash flows and relative valuation, including precedent sector transactions and trading comparables analysis.

Investment Service
  • We presented the results of the fairness opinion study and created a football field analysis to arrive at the valuation range for the target company.
  • We shared insights related to the deal rationale and drew implications on the commercial and operational synergies between the two firms from the potential acquisition.

Business Outcomes

  • The study provided useful insights on the operations of the target software company and a detailed valuation assessment
  • Based on the Fairness Opinion Study, the client successfully closed the deal within a span of three months, thus gaining a strong competitive advantage in the European markets.

The client was able to close the deal successfully within a three-month period, thus getting a strong competitive advantage in the European markets.

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