TSX:SRV.UN - Post by User
Comment by
BlueJay2020on Jan 08, 2021 1:15pm
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Post# 32255029
RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Statement from the Independent Trustees
RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Statement from the Independent TrusteesIndeed they would, and I've been involved on quite a few of these exercises during purchase price equations for accounting purposes (I'm a retired CA). It's a complex, time-consuming and expensive process. I think the chances of them coming up with a number of $3.55 would be close to nil, whichever way they slice it. The valuation has to be on a going concern basis, otherwise why would the offer be made in the first place - the valuation has to be consistent.
As someone has said, this is very far from a fait accompli.
logicandinertia wrote: Banker would use multiple valuation methods, including historical results, comparable company (even today, comps are valued much higher), and discounted cash flow (likely using next 5 or 10 years as range). Unless they heavily weight SIR bankruptcy risk, hard to see how somebody rationalizes a $30mm buyout for an asset that has been distributing $10mm per year for 15 years (up to 2019)...