Velocity Express is a North American express delivery service, specializing in same-day, on-demand services. The Company was recently purchased by TransForce, Inc. (TSX: TFI) a Canada-based, North American transportation and logistics company. Caliber provided financial advisory services to the Board of Directors of Velocity and prepared a fairness opinion on the transaction.
LPL Financial (NASDAQ:LPLA) provides wide range of financial services including: brokerage and investment advisory services to independent financial advisors; financial advisory services to regional banks and credit unions; and advisory services to affiliated insurance companies using an integral platform of proprietary technology.
Caliber was engaged to provide a solvency opinion in connection with a proposed special dividend. Our analysis included the traditional three point solvency tests under various optimistic and pessimistic scenarios. The capital adequacy test also was applied.
Velocity Express (NASDAQ:VEXPQ) is the only national provider of regional shipping solutions. A weak economy and a competitive environment have pressured valuations of express delivery companies (e.g., FDX and UPS), thus key understanding of gross margins and the changing nature of advertising are critical valuation considerations. Velocity recently underwent several capital restructurings and infusions and turned to Caliber Advisors to evaluate the fairness of these transactions, from a financial point of view.
While determining the fair market value of the enterprise is a central exercise to any fairness opinion, evaluating the capital structure, preferences and access to capital are also essential for companies like Velocity which make significant use of debt and preferred stock as sources of capital. Our expertise with the complex, highly levered structures enables us to fully understand the implications of these transactions and to communicate this understanding in lay terms to the Board for its consideration.
PRE Probiotic Enhancer is a new soft-drink that fuses organic juice enhanced with a proprietary prebiotic blend developed by Jarrow Formulas. PRE prebiotic beverage was developed to promote healthy digestive balance by triggering the growth of beneficial bacteria called probiotics already present in your digestive tract.
PRE was founded in 2008 and is an emerging company in a highly competitive space that has seen many new entrants, some very successful, some not so. We are retained by PRE to assist the Company determined its value for management and planning purposes. Critical in the analysis of Companies like PRE is predicting stabilized gross margins and growth potentials.
We were engaged to provide valuation services to this large Western Agriculture Bank. The bank had issued long term debt to a specialty produce farm and distributor in Northern California. However the farm had suffered operational issues a few years back and had not recovered at the time of our initial engagement.
We worked with the bank to determine the fair market value of the equity of the farm to support their lending requirements. The work required careful consideration of crop yields and factors affecting these yields that were particular to the farming techniques employed. Other considerations were the ability of the firm to distribute to large retailers like Costco and Trader Joes and strong seasonality in product demand.