Case Study
Enabling the successful acquisition of a European software company through a fairness opinion study
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.
- 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.
