Leveraged buy-out firms have little time to bid on investment opportunities. Frequently, in a rush to get a deal done, funds often overbid because they underestimate the level of risk associated with a deal.

SDG assisted a buy-out firm with a European transportation deal valued at nearly $1 billion. During our client's two-week exclusivity period, we provided an independent valuation of the deal as well as a recommended bid price. The team rigorously and consistently quantified each uncertainty so that we could identify key drivers of value and suggest how a deal could be structured to maximize upside and minimize downside risks.

Our client then used this proprietary information to submit a bid at the end of the two-week period. As expected from our analysis, our client did not win the bidding. Eventually, the investment was purchased by a strategic buyer with supposedly significant synergy.