Company: KG
Filing Date: 2025-03-10
Form Type: S-4
Source: 0001104659-25-021993
Chunk: 141

Company: Kestrel Group Ltd
Filing Date: 2025-03-10
Form: S-4
Chunk 141
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P Group, Inc.                                                              | ​ | ​ | RogersGray, Inc.,Breakwater Brokerage, LLC and Monomoy Insurance Group, LLC | ​ | ​ | 20.2x            | ​ |
| 09/18/2018 | ​ | ​ | Marsh & McLennan Companies, Inc.                                             | ​ | ​ | Jardine Lloyd Thompson Group plc                                            | ​ | ​ | 15.7x            | ​ |

The overall lower quartile and upper quartile Deal Value/EBITDA multiples observed for the selected transactions were 14.3x and 18.1x, respectively (with a median of 15.7x and mean of 16.2x). Based on the results of the foregoing calculations and IAP’s professional judgment and experience, IAP applied a reference range of Deal Value/EBITDA multiples of 15.0x to 17.0x to Kestrel’s 11/30/2024 Adjusted Last Twelve Months (“LTM”) EBITDA of $10.8 million based on Management Projections to derive a range of implied enterprise value of Kestrel of $162 million to $183 million. Discounted Cash Flow Analysis . IAP performed an illustrative discounted cash flow analysis on Kestrel to derive a range of illustrative enterprise values for Kestrel. Using the mid-year convention for

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discounting cash flows and discount rates ranging from 14.0% to 16.0%, reflecting estimates of Kestrel’s weighted average cost of capital, IAP discounted to present value as of December 27, 2024 (i) estimates of unlevered free cash flow for Kestrel for the fiscal years 2025 through 2028 as reflected in the Management Projections and (ii) a range of illustrative terminal values for Kestrel, which were calculated by applying terminal year exit enterprise value (“EV”) to the last twelve month EBITDA (“EV/LTM EBITDA”) multiples ranging from 11.0x to 13.0x, to a terminal year estimate of EBITDA to be generated by Kestrel as reflected in the Management Projections. The range of terminal year exit EV/LTM EBITDA multiples was estimated by IAP utilizing its professional judgment and experience. IAP derived ranges of illustrative enterprise values for Kestrel by adding the ranges of present values that it derived above. The discounted