Ebix Shareholders Are Getting A Raw Deal [View article]
Valuations from Goldman Sachs point of view
Take a look from the GS angle:
Raina/Rennes convert their 25% equity to 44% equity and GS gets the remaining 56%. Raina/Rennes will not get 20/sh cash for their equity. From GS point of view, they are spending 557.25MM for equity and 77MM for debt , ie total of 634MM to get 56% ownership. It means GS is valuing EBIX at 1132MM. This translates to bingo - 30.6/share. This is what GS is willing to pay for EBIX to get ownership.
EBIX has tax loss carried forward from the losses of Delphi, acquisitions etc. EBIX has preferred tax status with Govt of India. The singapore entity owns many of the IP rights/patents (nothing was transferred to singapore from acquired companies), and many of these IP rights/patents were developed. The Singapore is a lower tax regime. All of these actions result in lower tax rate. The fact is EBIX's tax rate has been increasing. They pay more than GE and other companies.
This is no different from the manufacturing companies who establish plants in Indonesia, China.. to produce goods cheaply. The tax game is played by every single company in US. If you don't play the arbitrage, the acquirer (like Raina) steps in. Let us talk when GE pays 30% tax rate and EBIX pays 2%.
Yes, earnouts are considered. Look at the matrix, for a given acquisition, the amounts spent over the years are shown. I believe this is the earn out. I understand that the row1 title should read "Amount spent on acquiring". What I meant to show was, how much they spent, how much revenue they got from acquisitions and what was the result on revenue growth.
for E-Z data I'm showing 50MM. This comprises of ~25MM cash & 25MM stock
EBIX: If The SEC Cometh, The SEC Will Findeth (Or So We Suspect) [View instapost]
I want to thank Copperfield for the excellent service. EBIX had been going up a lot and this gave me a great opportunity to add. The company is also buying back shares at low prices which helps long term buy and hold investors.
Keep them coming copper. I give you the title Goldnugget research
Ebix Shareholders Are Getting A Raw Deal [View article]
Ebix Shareholders Are Getting A Raw Deal [View article]
Valuations from Goldman Sachs point of view
Take a look from the GS angle:
Raina/Rennes convert their 25% equity to 44% equity and GS gets the remaining 56%. Raina/Rennes will not get 20/sh cash for their equity. From GS point of view, they are spending 557.25MM for equity and 77MM for debt , ie total of 634MM to get 56% ownership. It means GS is valuing EBIX at 1132MM. This translates to bingo - 30.6/share. This is what GS is willing to pay for EBIX to get ownership.
Ebix Shareholders Are Getting A Raw Deal [View article]
email id is enhanceebix@blogspot.com
Ebix Shareholders Are Getting A Raw Deal [View article]
The Best Is Yet To Come For Tecumseh Products [View article]
Understanding Ebix's Growth Strategy [View article]
This is no different from the manufacturing companies who establish plants in Indonesia, China.. to produce goods cheaply. The tax game is played by every single company in US. If you don't play the arbitrage, the acquirer (like Raina) steps in. Let us talk when GE pays 30% tax rate and EBIX pays 2%.
Understanding Ebix's Growth Strategy [View article]
for E-Z data I'm showing 50MM. This comprises of ~25MM cash & 25MM stock
Understanding Ebix's Growth Strategy [View article]
Broker systems competitors are Lumley, Sirius, Vertafore, Applied and XDimensional
BPO competitors are CSR 24, Datamonitor, CMS and Exigis
Carrier system competitors are CSC, Guidewire, Xchanging, DuckCreek and Delphi
Understanding Ebix's Growth Strategy [View article]
EBIX: If The SEC Cometh, The SEC Will Findeth (Or So We Suspect) [View instapost]
Keep them coming copper. I give you the title Goldnugget research