RE:Hundreds of Millions in Tax Loss Pools You need a better understanding of how bad this deal appears to be for us. If this fishnet company converts 25% of its current ebitda into free cash flow (a reasonable general assumption, which is all we can make due to the invisible financials of this entity) then we just paid 250mm for a 6mm annual benefit based on the limited financials shared with us thus far. A 2.5% free cash flow yield. We appear to be sending the bulk of our entire cash balance to India in exchange for half of the benefit of a short term bank CD, but with massively greater risk.
I am worried further because this is about the farthest thing from a value investment that they can make. It much more closely resembles a venture capital deal than anything else. Christopher Mittelman needs to retire if as a value manager he is now paying double digit multiples of ebitda for private companies. This contradicts everything I have ever read about his philosophy and is an unjustifiable transaction.