Post by
damianchosenone on Jun 19, 2019 10:49pm
New assessment
Been told by a friend from Deloitte that a haircut of 25 percent when a distressed company is selling assets is reasonable when there are competing bidders and drops much lower when there is only one or two. He told me he saw cases where some companies actually had higher bids than their values because of potential future outputs and markets. Well since rcg had multiple bids and at least one company of very deep pockets , I am going to say that they get 30 million and from that 5 million for operating costs
Comment by
LeftBook on Jun 20, 2019 7:22am
haircut of 25 percent vs what ? book value, asset value, value including tax credits --- Discounts are already baked into the numbers everywhere. 1) The tax credits provide a 40% discount 31 assets + 20 tax credits = 51 20/51 = 0.60 2) The NPV,5% has a 25% discount compared to the NPV,0%