printer Posted December 22, 2017 Share Posted December 22, 2017 Stolen from elsewhere, but interesting IMHO.......So here's the thing. Valuation of businesses is not that difficult. You're trying to find the price at which the shares should change hands between a willing buyer and a willing seller each in possession of all relevant information. If it is publicly listed you start with market cap. Total number of shares in issue x market price per share. It will go up and down with market sentiment and with the company's performance. If there is a takeover bid the price will usually go up with supply and demand. That's how you'd value Celtic. Sevco isn't in that situation, because there is no proper market in the shares, so you look to private company valuation methodology. Two options. One is net asset value. Tot up what you'd get for the whole basket of assets, less costs of realisation, less all debt and that's your number. Best approach for poorly performing but asset rich businesses. The other is to calculate an enterprise value. You get an adjusted maintainable EBITDA (Earnings before interest, taxation, depreciation of amortisation), and you apply a multiple to it to get the capital value. The multiple depends on market sentiment, type of business and so on, and can be quite subjective. In very basic terms you are saying, this business makes profit of £x a year, and in order to buy that recurring revenue stream I will pay a sum equivalent to 4 or 5 or 6 years earnings. The share price on that approach is enterprise value less net debt. Sevco is structurally loss making. It is doubtful whether it can be made profitable, since the sort of cost cutting needed will drive revenue right down as reality dawns on and ST sales melt away. There is no maintainable profit to apply a multiple to. On a break up it would not realise enough to cover its debt, so NAV is nil. The ruling means that King has to pay 20p a share. That comes to £11m apparently. You couldn't get near to that sort of valuation by any methodology. In a real world transaction the buyer would be ponying up the £11m for the shares, £23m or whatever to repay the debt, plus transactional costs of maybe £1m. For what? The privilege of supporting a structurally loss making business with no prospect of a return on investment. Even if there was a route back to profitability you'd have to price in the financial support needed over the turnaround period. The objective value of the shares is nil. if there is an insolvency event, which i see as increasingly likely, the shareholders will all be wiped out. I wouldn't be at all surprised if quite a few of them will take King's offer on the view they should get out with what they can while they still can. The bigger question is whether he can make the offer and what he does if he can't. I believe there may be a requirement to have a full blown offer document and verified funds available to pay. Happy Christmas Dave.ETA - c/r Ayrshire Bacon/KDS Agree with most of this.On whether the g&s bigot 'can' make the offer, what is there genuinely to stop him? Not saying I think he will - that remains to be seen. I expect he'll find himself back in court. 0 Quote Link to comment Share on other sites More sharing options...
Joey Jo Jo Junior Shabadoo Posted December 22, 2017 Share Posted December 22, 2017 4 hours ago, Joey Jo Jo Junior Shabadoo said: Oldco to 2010 had accumulated losses of £136million. http://library.isdx.com/infostore//Company-Accounts/RangersFootball/rangers2010.pdf (p17). Newco's accumulated losses are £25million .https://media.rangers.co.uk/uploads/2017/11/Rangers-Reports-and-Accounts-2017.pdf (p24). That's the definition of 'structurally loss making'. And a couple of million pounds here or there won't make the slightest bit of difference. You are right about one thing, though. Your knowledge is fairly limited. Quoting myself, I know, but that doesn't include the big tax bill. Eyewatering amount of cashspunk. 1 Quote Link to comment Share on other sites More sharing options...
Kneal Down Caster Posted December 22, 2017 Share Posted December 22, 2017 What happens if Dodgy Dave can't or won't purchase the other shares ? 0 Quote Link to comment Share on other sites More sharing options...
Drew Brees Posted December 22, 2017 Share Posted December 22, 2017 What happens if Dodgy Dave can't or won't purchase the other shares ? Financially cold shouldered, and implications for all companies he's associated with. In effect financially blacklisted. Secondly, if he doesnt comply he'll be in contempt of court, and could be arrested and jailed, but only if he sets foot in Britain. Hopefully he wont comply, the best of both worlds. 1 Quote Link to comment Share on other sites More sharing options...
derbydan Posted December 23, 2017 Share Posted December 23, 2017 Quote King gets away with it as the fans are "blindly Loyal" keep on buying Season Tickets and believe because he is a "Rangers" man all is OK! 0 Quote Link to comment Share on other sites More sharing options...
Benjamin_Nevis Posted December 23, 2017 Share Posted December 23, 2017 "The good guys won"[emoji38] 0 Quote Link to comment Share on other sites More sharing options...
Dr Koop Posted December 23, 2017 Share Posted December 23, 2017 13 hours ago, Kneal Down Caster said: What happens if Dodgy Dave can't or won't purchase the other shares ? Pfft, eleven million quid falls out of the big man's trouser pockets when he digs out a hankie to blow his nose. 2 Quote Link to comment Share on other sites More sharing options...
kildog Posted December 23, 2017 Share Posted December 23, 2017 Why did no one warn them? 1 Quote Link to comment Share on other sites More sharing options...
kiddy Posted December 24, 2017 Share Posted December 24, 2017 Has anyone seen, or heard from, Jabba lately? 0 Quote Link to comment Share on other sites More sharing options...
Doctor Sanchez Posted December 24, 2017 Share Posted December 24, 2017 Just had a quick swatch. Wow. What they need is a Proddy Liewell(?) and King is infact a glib and shameless liar. So glorious, it's been bookmarked for eternity. 0 Quote Link to comment Share on other sites More sharing options...
scottxs Posted December 24, 2017 Share Posted December 24, 2017 Oh dear even the morons on Swallow Swallow are turning....not long till King legs it surely. https://www.followfollow.com/forum/threads/dave-kings-words-just-more-than-2-weeks-ago.13774/ If honest Dave does go I hope he calls in his loans. Imagine the meltdown if the guy that was a saviour ends up killing the company /club. 0 Quote Link to comment Share on other sites More sharing options...
Aubrey Maturin Posted December 24, 2017 Share Posted December 24, 2017 1 minute ago, scottxs said: If honest Dave does go I hope he calls in his loans. Imagine the meltdown if the guy that was a saviour ends up killing the company /club. Has a saviour ever killed a club previously... 3 Quote Link to comment Share on other sites More sharing options...
orfc Posted December 24, 2017 Share Posted December 24, 2017 http://www.bbc.co.uk/sport/football/42469305 King's going to appeal/challenge the decision, but he said he was penniless, how can he afford to appeal? 0 Quote Link to comment Share on other sites More sharing options...
weirdcal Posted December 24, 2017 Share Posted December 24, 2017 http://www.bbc.co.uk/sport/football/42469305 King's going to appeal/challenge the decision, but he said he was penniless, how can he afford to appeal? I thought the court was him challenging the decision after appeal had failed? 0 Quote Link to comment Share on other sites More sharing options...
cyderspaceman Posted December 24, 2017 Share Posted December 24, 2017 Now that King Dave King is the new Big Bad Bogeyman, who is the latest Blue'n'White Knight that the Orcs would like to ride to the rescue? I've not been keeping up, really but the name Mike Ashley has cropped up on RM. . know it's the panto season but that would be ridiculous. Oh no it wouldn't.! (in before the rest) 1 Quote Link to comment Share on other sites More sharing options...
cyderspaceman Posted December 24, 2017 Share Posted December 24, 2017 6 hours ago, McQuade said: Oh dear even the morons on Swallow Swallow are turning....not long till King legs it surely. https://www.followfollow.com/forum/threads/dave-kings-words-just-more-than-2-weeks-ago.13774/ I see that everyone on that thread has joined this year. What happened? A purge? Server explosion? Service provider not get paid? 1 Quote Link to comment Share on other sites More sharing options...
scottxs Posted December 24, 2017 Share Posted December 24, 2017 http://www.bbc.co.uk/sport/football/42469305 King's going to appeal/challenge the decision, but he said he was penniless, how can he afford to appeal? Is he skint tho? Does anyone actually believe a word he Says? 0 Quote Link to comment Share on other sites More sharing options...
bennett Posted December 24, 2017 Share Posted December 24, 2017 2 hours ago, orfc said: http://www.bbc.co.uk/sport/football/42469305 King's going to appeal/challenge the decision, but he said he was penniless, how can he afford to appeal? Legal aid, don't you know anything... -4 Quote Link to comment Share on other sites More sharing options...
Insaintee Posted December 24, 2017 Share Posted December 24, 2017 2 hours ago, bennett said: Legal aid, don't you know anything... Not UK resident so is ineligible for legal aid. 0 Quote Link to comment Share on other sites More sharing options...
bennett Posted December 24, 2017 Share Posted December 24, 2017 25 minutes ago, Insaintee said: Not UK resident so is ineligible for legal aid. He fibbed on the form. -1 Quote Link to comment Share on other sites More sharing options...
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