IPO Preview: SIRVA

Aug. 1.14 | About: SIRVA (SRVA)


High P/E multiple of 63, very leveraged.

1% revenue growth for Q1 '14 vs. Q1 '13.

No proceeds to company.

Accumulated deficit of -$316 million.

Based in Oakbrook Terrace, IL, SIRVA (NASDAQ:SRVA) scheduled a $186 million IPO on the Nasdaq with a market capitalization of $632 million at a price range midpoint of $16 for Friday, August 1, 2014.

The full IPO calendar is available at IPOpremium

SEC Documents

Manager, Co-Managers: Morgan Stanley, Goldman Sachs, J.P. Morgan

Joint Managers: Baird, William Blair

End of lockup (180 days): Wednesday, January 28, 2015

End of 25-day quiet period: Tuesday, August 26, 2014

SRVA is a moving/relocation company.



Accumulated deficit ($mm)


Per share dilution


Valuation Ratios

Mrkt Cap ($mm)

Price /Sls

Price /Erngs

Price /BkVlue

Price /TanBV

% offered in IPO

annualizing 2013 yr because seasonal








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  • The rating is neutral minus
  • High P/E multiple of 63, very leveraged
  • 1% revenue growth for Q1 '14 vs. Q1 '13
  • No proceeds to company
  • Accumulated deficit of -$316 million.

To put the conclusions and observations in context, the following is reorganized, edited and summarized from the full S-1 referenced above.


SRVA is a leading provider of mobility services for multi-national corporations and government institutions. SRVA's customers, typically corporate human resources departments, use SIRVA's solutions to optimize the deployment of their professional talent on a global basis-ensuring that their best people are leading their most important initiatives, regardless of where in the world they are located.

SRVA serves more than 1,800 customers, including approximately 28% of the Fortune 500 and two-thirds of the Dow Jones 30.

SRVA plays a valuable role as the outsource partner for corporations and government institutions, providing an end-to-end solution that SRVA believes offers an overall enhanced mobility experience, program control and security for its customers, the relocating employee (the "transferee") and the transferee's family.

SRVA provides a suite of over 50 distinct mobility services, including relocation assistance and moving services.

SRVA enables its corporate and institutional customers to outsource their mobility needs, allowing them to focus on executing their strategies and enhancing their productivity.

In 2013, SRVA executed over 280,000 mobility events for its corporate, government and consumer customers. SRVA's approximately 2,500 employees, located both within its offices and on-site within its customers' human resources departments, provide a customized solution for each transferee.

Consistent with its marketing slogan "Everything you need, everywhere you need it," SRVA provides its customers with what it believes to be the most global and complete mobility solution.

This has enabled SRVA to maintain long-term relationships with its customers, as reflected by its high customer retention rates. For example, from 2011 to 2013, SRVA achieved a 98% retention rate for its corporate customers in its Mobility Solutions segment and an over 99% retention rate for its corporate and government institution customers in its Australia segment.

SRVA has not historically tracked customer retention rates in its Europe, Asia and Emerging Markets segment as this information would not be a meaningful performance indicator due to the small size of this segment.

Dividend Policy

No dividends planned


SRVA's top competitors for large multi-national corporations include Cartus Corporation, Brookfield Global Relocation Services and Weichert Relocation Resources.

SRVA also competes with single service providers, including a wide variety of real estate brokers, moving companies, accounting firms, mortgage firms, destination service providers and business process outsourcing firms.

SRVA's Allied and North American agent networks compete in the United States and Canada with Unigroup Inc. (the operator of United Van Lines LLC and Mayflower Transit, LLC), Atlas World Group, Graebel Companies, Inc. and Wheaton Van Lines, Inc.

SRVA's agent network also faces competition from smaller independent movers, self-storage and self-haul service providers.

In addition, in international markets SRVA's competitors include the Asian Tigers Group, Crown Relocations, Grace Removals Group, Santa Fe Transports Intl. Ltd., Sterling International Group and WridgWays.

The most significant competitive factors in this segment are integration of services, quality of the transferee experience, global and local presence, scope of expertise, scalability and cost competitiveness.

5% stockholders

Affiliates of Aurora Capital Group, 58.3%

Funds Managed by Equity Group Investments, 30.8%

Use of proceeds

SRVA intends to use the $165 million in proceeds from its IPO as follows:

  • $153.2 million of the net proceeds from this offering to redeem all of its outstanding Series A Preferred Stock, including accumulated dividends, and to use the remainder for general corporate purposes.

Disclaimer: This SRVA IPO report is based on a reading and analysis of SRVA's S-1 filing, which can be found here, and a separate, independent analysis by IPOdesktop.com. There are no unattributed direct quotes in this article.

Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it. The author has no business relationship with any company whose stock is mentioned in this article.