Company: TIPT
Filing Date: 2025-10-31
Form Type: DEFM14A
Source: 0001140361-25-039949
Chunk: 119

Company: TIPTREE INC.
Filing Date: 2025-10-31
Form: DEFM14A
Chunk 119
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egra Projections, (ii) dividends in each of the years from and following 2031 using the Gordon growth method with a rate of 2.5% applied to 2030E projected dividend, (iii) an operating leverage, calculated as year-end NPW divided by year-end book value, based on the Fortegra Projections through 2029E, reflecting no incremental capital release or injection, (iv) target operating leverage for 2030E in-line with the Fortegra Projections for 2029E and (v) estimates of Fortegra’s cost of equity, ranging from 9.0% to 11.0%. This dividend discount model analysis resulted in a range of implied equity values of $1,269 million to $2,029 million. Barclays noted that on the basis of the dividend discount analysis, the aggregate consideration of $1,650,000,000 was within the range of implied values calculated using the Fortegra Projections. General Barclays is an internationally recognized investment banking firm and, as part of its investment banking activities, is regularly engaged in the valuation of businesses and their securities in connection with mergers and acquisitions, investments for passive and control purposes, negotiated underwritings, competitive bids, secondary distributions of listed and unlisted securities, private placements and valuations for estate, corporate and other purposes. The Fortegra Board selected Barclays because of Barclays’ familiarity with Fortegra and its qualifications, reputation and experience in the valuation of businesses and securities in connection with mergers and acquisitions generally, as well as substantial experience in transactions comparable to the Merger. Barclays is acting as financial advisor to Fortegra in connection with the Merger. As compensation for its services in connection with the Merger, Fortegra paid Barclays a fee of $3 million upon the delivery of Barclays’ opinion, which is referred to as the “Opinion Fee”. The Opinion Fee was not contingent upon the conclusion of Barclays’ opinion or the consummation of the Merger. Additional compensation of $9 million will be payable by Fortegra on completion of the Merger. In addition, Fortegra may pay to Barclays an additional discretionary fee of up to 0.05% of the consideration paid in connection with the Merger and the other transactions contemplated by the Merger Agreement if Fortegra determines, in its sole discretion, that such fee is warranted. In addition, Fortegra and Tiptree have agreed to reimburse Barclays for a portion of its reasonable out-of-pocket and documented expenses incurred in connection with the Mer