Nice post and interesting idea. The transaction is a bit odd in that they seem to want to part with the crown jewel on the cusp of a supposed inflection. Why is that a good idea?
I had the same questions about tax leakage. Does the company have sufficient NOLs to offset the gain from sale? If not, then that could push toward a spin-off if such a deal were possible. It would likely be structured as a Reverse Morris Trust; but I'm not sure if there is a strategic buyer that could make a RMT deal work.
- if there is c $100m of “central cost” then that is so absurdly high it must also include material real costs that should be in each business, as well as the truly central listed company type costs. Some of that should be deducted from ISP EBITDA, no?
Please please please include capex and/or depreciation in your theses, I know you are ex Private Equity but one can’t come to a sensible view on absolute or relative valuation without this.
This is a very well articulated thesis. Kudos
Nice post and interesting idea. The transaction is a bit odd in that they seem to want to part with the crown jewel on the cusp of a supposed inflection. Why is that a good idea?
anything changed after the recent Q3 numbers?
I had the same questions about tax leakage. Does the company have sufficient NOLs to offset the gain from sale? If not, then that could push toward a spin-off if such a deal were possible. It would likely be structured as a Reverse Morris Trust; but I'm not sure if there is a strategic buyer that could make a RMT deal work.
Excellent thesis. Thank you.
What about:
- tax on disposal profits?
- if there is c $100m of “central cost” then that is so absurdly high it must also include material real costs that should be in each business, as well as the truly central listed company type costs. Some of that should be deducted from ISP EBITDA, no?
Please please please include capex and/or depreciation in your theses, I know you are ex Private Equity but one can’t come to a sensible view on absolute or relative valuation without this.