Custom Steel Fabricator | STRATEGIC ADVISORY & VALUATION
The Client (the Company) had been approached by a Strategic Acquirer and asked for Frontier’s services in (a) conducting a valuation analysis and (b) evaluating and preparing the Company for a potential sale transaction.
Frontier compiled specific data on comparable market multiples from public and private transactions and prepared appropriately discounted Company projections with sensitivity analysis in order to develop a set of valuation conclusions that assisted the Company in responding intelligently to a serious inquiry from the Strategic Acquirer. The Company did not pursue a sale transaction with the Strategic Acquirer given that the Acquirer’s valuation expectations were consequently deemed insufficient and determined to be materially lower than the Company’s market value. As a result, the Company’s owners did not sell the Company at a material discount to its true value and are adequately prepared to pursue a liquidity event at the optimal time in the future.