M&A · Financials · Fire, Marine & Casualty Insurance
Berkshire Hathaway Inc to acquire Alleghany Corp
Announced Mar 21, 2022 · Closed Oct 19, 2022
Deal value$11.60B
Premium25.3%To unaffected price
EV / Adj. EBITDA—
ConsiderationAll cash$848.02 per share
Transaction
- Acquirer
- Berkshire Hathaway Inc (BRK-B)
- Target
- Alleghany Corp (Y)
- Buyer type
- Strategic
- Offer price per share
- $848.02
- Enterprise value
- —
- Status
- Closed Oct 19, 2022
Deal protections
- Break fee (target pays)
- —
- Reverse fee (buyer pays)
- —
- Go-shop
- Go-shop
- Financing
- No financing condition
Advisors
- To the acquirer
- Not disclosed
- To the target
- Goldman Sachs
- Goldman Sachs fee
- $27.0M
Sector context · Financials
- Comparable deals
- 71 in the prior 24 months
- Premium
- 25.3% vs. 35.7% sector median
- EV / Adj. EBITDA
- Sector median 21.7x
- Break fee
- Sector median 3.6%
Timeline
- AnnouncedMar 21, 2022
- Proxy filedApr 11, 2022
- Definitive proxyApr 29, 2022
- Shareholder voteJun 9, 2022
- ClosedOct 19, 2022
Valuation · fairness opinions
Discounted cash flow$599.00$807.00
Future share price$567.00$791.00
Precedent transactions$756.00$914.00
Premiums paid$788.00$1,035.00
Offer $848.02
Implied value per Alleghany Corp share by analysis, from Goldman Sachs · DCF discount rate 9.2%–10.4%.