Will you do some post-mortems to determine the discrepancies and increase the accuracy of your future
liquidation value analyses?
Here is
the liquidation value analysis based on its most recent quarterly financial statement to September 30, 2009 (the «Book Value» column shows the assets as they are carried in the financial statements, and the «Liquidating Value» column shows our estimate of the value of the assets in a liquidation):
Not exact matches
Our
analysis indicates that these payouts, which we believe would be triggered by most «change in control» scenarios, including a
liquidation, total at least $ 2 million, a significant amount of the Company's entire market
value at the time of adoption.
Our
analysis indicates that these payouts, which we believe would be triggered by most «change in control» scenarios, including a
liquidation, total at least $ 3 million, an incredible 16.5 % of the Company's entire market
value at the time of adoption.
Our
analysis indicates that these payouts, which we believe would be triggered by most «change in control» scenarios, including a
liquidation, total at least $ 3 million, an incredible 20 % of the Company's entire market
value.
Downside Protection: Based on our
analysis, subsequent to the transaction, if MediciNova is unsuccessful Avigen stockholders will receive a modest discount to the current
liquidation value of Avigen (which we estimate to be approximately $ 1.20 / Share, net of debt and expenses), as determined by an independent auditor.
In this video, you will learn: Various valuation techniques How to use DCF
analysis How to calculate
liquidation value How to determine owner's earnings -LSB-...]
In «Security
Analysis» Graham describes how current assets available for shareholders, i.e. current assets - total liabilities, can be used as an approximation for
liquidation value.
We estimate ESIO's stand alone liquidating
value at around $ 277M or $ 10.12 per share, which is 54 % higher than its close, as the following summary
analysis demonstrates (the «Carrying» column shows the assets as they are carried in the financial statements, and the «Liquidating» column shows our estimate of the
value of the assets in a
liquidation):
The following summary
analysis assumes that ESIO buys back $ 100M of stock at $ 6.56 and shows ESIO after the buy back is complete (the «Carrying» column shows the assets as they are carried in the financial statements, and the «Liquidating» column shows our estimate of the
value of the assets in a
liquidation):
The following summary
analysis shows ESIO after the merger with ZIGO is complete (the «Carrying» column shows the assets as they are carried in the financial statements, and the «Liquidating» column shows our estimate of the
value of the assets in a
liquidation):
Next, the analyst should engage in a thorough
analysis of each security to determine if you truly have a net nets on your hands (e.g. by adjusting the
value of receivables and inventories to reflect true
liquidation value).
Set out below is our summary
analysis of the balance sheet (each «Carrying» column shows the assets as they are carried in the financial statements, and each «Liquidating» column shows our estimate of the
value of the assets in a
liquidation):
In Security
Analysis, Graham wrote that, in determining the
liquidation value, the current - asset
value generally provides a rough indication:
Set out below is our updated summary
analysis (the «Carrying» column shows the assets as they are carried in the financial statements, and the «Liquidating» column shows our estimate of the
value of the assets in a
liquidation):
Warren Buffett understood, through rational
analysis what the going - concern
liquidation value of the business was and was also able to rationally analyze an intrinsic
value for the business, assuming it would continue as a whole entity.
The potential for an acquisition of Northstar at a valuation materially in excess of the estimated
liquidation value reflected in management's
liquidation analysis, or the potential for a strategic transaction that would significantly mitigate shareholder risks from continued operations, was also discussed.
Set out below is our summary
analysis of the company's balance sheet (the «Carrying» column shows the assets as they are carried in the financial statements, and the «Liquidating» column shows our estimate of the
value of the assets in a
liquidation):
Our board of directors considered the fact that we were in the early stages of considering strategic alternatives that could create more
value for shareholders than the Tang Capital proposal, that the directors believed that continuing to execute on our strategic plan, which included conducting the PROSPECT II clinical trial and continuing to develop our Renova ™ Cortical Stimulation System, could ultimately create more
value for shareholders than the Tang Capital proposal, and that management had prepared an informal
liquidation analysis which showed that the estimated
liquidation value of Northstar at that time was greater than the price in the Tang Capital proposal.
How should investors
value assets in a
liquidation analysis?
CERA, whether it involves mergers and acquisitions, takeovers,
liquidations, or reorganizations, requires much the same fundamental
analysis as does
value investing.
Set out below is our summary
analysis (the «Carrying» column shows the assets as they are carried in the financial statements, and the «Liquidating» column shows our estimate of the
value of the assets in a
liquidation):
Set out below is our summary
analysis of the balance sheet (the «Carrying» column shows the assets as they are carried in the financial statements, and the «Liquidating» column shows our estimate of the
value of the assets in a
liquidation):
This sort of
analysis is beyond us, so we focus on the
liquidation value.
Set out below is our summary
analysis of the balance sheet (the «Book
Value» column shows the assets as they are carried in the financial statements, and the «Liquidating Value» column shows our estimate of the value of the assets in a liquidat
Value» column shows the assets as they are carried in the financial statements, and the «Liquidating
Value» column shows our estimate of the value of the assets in a liquidat
Value» column shows our estimate of the
value of the assets in a liquidat
value of the assets in a
liquidation):