Business case
Our client, a publicly traded Canadian entity owning a zinc smelting facility, was considering a proposed takeover from a minority unitholder owning 25% of the stock.
We concluded that the offer made by the minority unitholder was fair from a financial point of view but also in light of qualitative considerations and alternative options available to the fund.
We were engaged us to deliver a formal valuation report and issue a fairness opinion. We conducted a detailed review of the target’s BP and historical financial performance, as well as an analysis of the zinc market to determine the fair market value of the fund’s units. We primarily used the DCF method to establish the market value but also a market-based approach using comparable companies and transactions multiples.