The Company: A U.S.-based manufacturer of low hazard motor vehicle component parts with operations in the U.S. and Mexico.
The Challenge: The company targeted an add-on acquisition that was (i) twice their size, (ii) manufactured products that were much higher hazard, (iii) had locations in Mexico & China, and (iv) had historical losses that were unfavorable.
The Equity Risk Partners Global Solution: Within two weeks, Equity Risk Partners Global brokers collaborated in order to determine how the target's risk profile and historical losses would impact the company on a go-forward basis. Their analysis allowed the client to include an accurate figure for insurance expense in their financial model and offer a proper valuation for the company.
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