SAM #2031JW26I00010

Valuation Services for Bank Common Shares Post-Merger (OCC)

The Office of the Comptroller of the Currency (OCC), under the Department of the Treasury, is seeking expert valuation services for the common shares of two recently merged banks. - Government Buyer: - Department of the Treasury - Office of the Comptroller of the Currency (OCC) - Products/Services Requested: - Valuation report for the common shares of two merged banks - Contractor must have at least 10 years of experience in valuing banking organizations' stock prices - Report must include: - Value of the bank stocks as of the merger date - Detailed methodologies and limitations used in the valuation - Application of a marketability discount for closely held or limited trading history stocks - Explanation of weighting if multiple valuation methods are used - Exclusion of purchase premiums from the valuation - Peer group for comparison defined by location, size, business model, and earnings pattern - Unique/Notable Requirements: - Emphasis on experience in bank stock valuation - Specific instructions on methodology, peer group selection, and exclusion of purchase premiums - No OEMs or specific vendors are named in the notice.

Description

Background: two banks have merged and the OCC is required to determine the value of the bank's common stocks. The OCC is looking for a contractor with at least 10 years of experience valuing banking organizations’ stock prices.

The OCC will require a valuation report outlining the value, methodology (s), and limitations used by the contractor to determine the value of the bank stocks. Valuation Methodology Considerations: - Value of the stock as of the date of consummation of the merger. - Application of a marketability discount for stocks that are closely held or have a limited trading history. - If more than one method is used, are varying weights applied in reaching an overall valuation? If so, how are the weights determined. - For mergers, the OCC recognizes that purchase premiums do exist and may, in some instances, be paid for in the purchase of small blocks of shares. The payment of purchase premiums, however, depends entirely on the acquisition or control plans of the purchasers, and such payments are not regular or predictable elements of value. Consequently, the OCC's valuation methods do not include consideration of purchase premiums in terms of the value of shares. - Defined peer group based on location, size, business model, and earnings pattern.

Please send Capabilities statement to marlon.holland@occ.treas.gov

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