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Midstream: Valuation: International Bank: Valuation Of Businesses & Assets

Opportune was engaged by an international bank serving as the agent for a lender group to conduct valuation analyses of two terminal facilities in connection with the renewal of an existing loan. The analyses included both the value of the terminals as businesses and the underlying tangible assets.

The lender group required the agent bank to engage a third-party to provide a valuation analysis of the tangible assets used as collateral for the loan. The business valuation provided economic support for the value of the tangible assets and provided additional support that the lender group could utilize to make a final investment decision.

Opportune conducted a detailed business valuation of the respective terminal businesses utilizing both a discounted cash flow and guideline public-company multiples analysis. The tangible assets for the respective terminals were valued using a cost approach based on the useful life and condition of the assets.

Opportune added value to the client by providing the lender group both the tangible asset values and the economic support derived from the business values. As a result, the lender group was able to make an informed decision with respect to the loan.

Opportune understands the increasing complexities of energy-industry valuations, and performs advanced analyses of derivatives, securities, equity instruments, debt instruments and corporate deal structures for numerous organizations in the energy market. For additional information, CLICK HERE.

Dean Price

PartnerOpportune LLP