Goldman Sachs Investment Banking Pitch Book
Sachs
Ferdinand - Key Considerations
Pros
■ Achieve cash premium at time where market, macro
and geopolitical risks are heightened
43% premium to 90-day weighted average share
price
■ Eliminates downside risk and risk of fully achieving
business plan / process
■ Focus has struggled to achieve desired valuations as
public company
Go-forward business plan is generally consistent
with historical plan
Opportunity to more significantly transform the
business as a private company than may be feasible in
the public markets
- Private ownership allows for more flexible capital
structure and greater ability to restructure business
/ shift strategy as a private company
■ CD&R is a well-respected and credible buyer
Very few other bidders have emerged historically
Note: Market data as of 16-Dec-2022.
Cons
INVESTMENT BANKING
DIVISION
CONFIDENTIAL
Elimination of future upside (and downside) in the
business for most shareholders
■ Value of CD&R's $50 per share offer relative to view of
intrinsic / standalone value
- Value assumes debt capital structure can remain
in-place/Stone Point continues to be large equity
holder
Can value be increased beyond $50 per share?
■ Challenging debt and overall markets may increase
execution risk and impact valuation today - wait for
better market?
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