RE:RE:RE:RE:RE:RE:RE:IPO deal my thoughtsIt goes in the pocket of ALA. The company. If not, then who's pocket does the $1 billion go into? Shareholders pocket? Same thing. Unless they announce a special dividend it stays in the pocket of ALA. On dragons den they use the equity to pay off debt or invest in the business. Not to go to Hawaii.
4phuqsakes wrote: LOL - no. And this is the point really. I put the $50k in my pocket and we each own half of a $100k company. I get $50k in exchange for half my company. My equity in the company drops to $50k. No new value is created.
Lansing76 wrote: If the gold were your only asset in your company and someone paid you $50k for 50% ownership, then your company contains $100k of gold bullion and $50,000 cash. Each of you would have $75,000 equity in a $150,000 company. The company is worth 50% more.
babedinkleman wrote: That is some funky math....I'm going to sell my gold bullion.....half of it actually. It's currently worth $100,000. I'm selling half of it for $50,000. Amazingly now the gold bullion is worth $150,000. Ummmmm no
Lansing76 wrote: Like this: Company valued at $1 million on dragons den. Seeks $500,000 for 50%. If deal is made, company now valued at $1,500,000. (Original value plus $500,000 cash).
4phuqsakes wrote: Isn't this just rearranging the deck chairs? The cash flows and debt currently exist within ALA. How does splitling them off into a seperate (and with yet to be defined management team) entity create any new value?
MKGGNR2013 wrote:
Sorry my first post here..... the last sentence I meant to say, the IPO deal is better than the simple asset sale because the debt repayment from ACI to ALA, and ACI is responsible to pay the whole $440m off using its future cash flows