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wow you really know how to hedge your bets
Hey one that's not even funny I think that price swing would kill some PPL
I know this was my math........
Posted by: 19cougar73 Date: Sunday, March 22, 2009 10:10:46 AM
In reply to: A deleted message Post # of 102437 [Send a link via email]
IMO the company or PPL who are looking to purchase EESO probably already own a large chunk of shares and know the value of the company so say they own 200 mil (remember the walk down we had)
and take the 300 Restricted shares out you are down to paying for 1,488,609,857 shares at the buyout price what ever that may be I still say at least .25 so they would only end up paying about 372mil to get the rest of the shares
Could not agree with you more........
last name was murphy
FORT WAYNE, IN--(Marketwire - March 20, 2009) - The promise of news from South Korea has attracted positive attention to Enzyme Environmental Solutions (PINKSHEETS: EESO) as of late for its products and formulas, including the food and garbage applications inherent to the FG-500. One company has taken particular interest in EESO and came to CEO Jared Hochstedler recently with an offer to purchase the company in its entirety.
that's true get your product and name out first and then everyone else is always second best because you are in the spot light
A letter of intent or LOI is a document outlining an agreement between two or more parties before the agreement is finalized. A LOI may also be referred to as a memorandum of understanding (MOU), or term sheet. Although the terms refer to different documents, the differences are often formal in nature, reflecting different drafting styles or business customs, not a substantive difference in what these various documents accomplish.
Letters of Intent, Term Sheets, and MOUs resemble written contracts, but are usually much shorter and are not binding upon the parties in their entirety. Many LOIs, however, contain provisions that are binding, such as non-disclosure agreements, a covenant to negotiate in good faith, or a "stand-still" or "no-shop" provision promising exclusive rights to negotiate. A LOI may also be interpreted as binding the parties if it too closely resembles a formal contract.
The purposes of a LOI may be:
* to clarify the key points of a complex transaction for the convenience of the parties
* to declare officially that the parties are currently negotiating, as in a merger, acquisition, divestiture, joint venture (JV), or strategic alliance proposal
* to provide safeguards in case a deal collapses during negotiation
The term sheet is the first step in the process leading to definitive agreements that will reflect the terms of the venture capital or other private equity transaction. A term sheet is the “agreement to agree” on the main points of a deal. There is always a tension in the preparation of the term sheet between whether to have a tightly negotiated, detailed term sheet, with most of the terms explicitly spelled out, or to have a more generalized term sheet, with the understanding that significant terms will continue to be negotiated during the due diligence process. The former approach can make drafting the definitive documents easier because the parties have spelled out the specific terms of the transaction, although it may be more difficult to re-negotiate key terms as the parties go through the process of conducting due diligence and documenting the transaction, even though not all provisions in a term sheet are binding. On the other hand, a simpler term sheet requires that more effort be expended during the final documentation phase of the transaction, but gives the parties more room to maneuver (and possibly re-trade) before the definitive documents are completed.
I believe that would depend on how many shares Jared owns he may be able to over rule us and I don't think common shares always have the the right to vote
We don't know yet but if you can get in under .05 I would strongly urge you to do so...... as I have see .05 being the lowest price we should get and I believe at least .25 and up read my posts they explain my price figures...... good luck to ya
IMO it is very undervalued....and they have a letter of intent for a buyout
We are invested in that rare .00001% of pinks that are a REAL COMPANY........
LOL, this could be fun to watch as I have no more $$$$ to put into it but will just sit and watch........
Have you tried any of the products yet?
Well then you did not see me at the open house, but I was at the Wow green presentation. So yeah there must have been PPL that were not at the open house as I am sure not everyone was at the open house........ But you would be correct in saying most of the PPL came from the open house but not all of them
what time did you go to the open house?
No that's not what he said.......
Posted by: Buluba Date: Saturday, March 21, 2009 9:23:57 PM
In reply to: 19cougar73 who wrote msg# 101707 Post # of 101835 [Send a link via email]
Of course he did. It was an EESO open house. I said All and ANY Wow Green material, seminars, etc. Everybody at the open house already new. Outside of that open house no one on this board or any other board would have heard Allie or anyone else mention EESO at any other time.
It WAS NOT AT THE OPEN HOUSE LIKE I SAID IT WAS AT THE WOW GREEN PRESENTATION
Posted by: 19cougar73 Date: Saturday, March 21, 2009 4:56:50 PM
In reply to: Buluba who wrote msg# 101648 Post # of 101829 [Send a link via email]
You are wrong on one point and that is Alie did make the connection between EESO and Wow Green at the Wow Green meeting in Fort Wayne
Well you can continue to hold your shares or trade them as normal or hold them for the buyout if that happens you will receive the payment decided on buy EESO and the buyer could be cash or stocks in the other company or both if the give EESO xxx amount of dollars then you divide xxx by the OS to get the PPS you will receive for eash stock share you own at that time
thing is I believe given time EESO could be well over a dollar so kind of hope we don't get the buyout unless its a lot higher EESO has a lot of room to grow
EESO is entertaining a Buyout offer PPL have posted estimates from .05 to 2.00 I think at least a low end price of .25
And the PR stated buyer requested that EESO release at least 300 Million of its remaining shares on a restricted basis as part of the overall exchange should both parties come to a mutual agreement;
You can still buy more shares
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I believe at the Open House Jared said they were having a 18,000 SQ foot build out put on the warehouse....... anyone else remember that?
You are wrong on one point and that is Alie did make the connection between EESO and Wow Green at the Wow Green meeting in Fort Wayne
Do we have any idea who makes the product the Koreans currently use to break down the PIG POOP????
IMO you would not sell unless that offer is HUGE
maybe total sales of company for 2009
HEY back to the number in the sand could it be 180m for the sale of the company? (not enough IMO)
they do not own those share until a deal is done the shares are just restricted so Jared could not sell them to someone else
Don't forget that this buyer will try to pick up shares on the OPEN MARKET because every share that the own is one less than they will have to pay full price for latter
How The Big Boys Buy
by Marv Dumon (Contact Author | Biography)
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In 2006, mergers and acquisitions (M&A) worldwide nearly totaled $1.6 trillion. With M&A activity in full swing for 2007, readers and investors often ask what is just beyond the horizon in today's heated buyout environment. Many types of company acquirers are now competing to purchase a limited number of U.S.-based, investment grade operating companies. The trend points to a hyper-competitive landscape in which traditional buyout firms, financiers, hedge funds, investment banks and senior executives are competing for deals. (To learn more about M&As, see The Basics Of Mergers And Acquisitions, The Merger - What To Do When Companies Converge and The Wacky World of M&As.)
Factors Affecting the Buyout Landscape
Several factors are helping to drive acquisitions, including the insatiable demand for energy, which causes higher demand for oil-related equipment and services, and the continued economic expansion of the southern region of the United States. Energy services in particular have caught the attention of investment groups as many companies operating in this space are seeing record profits. These businesses also tend to be insulated from cyclicality, as America's energy infrastructure is old and in need of constant maintenance. Healthy corporate profits and an ever-tightening competitive market have also diversified the attention of the major players to other parts of the economy. These factors continue to shape the M&A landscape and will likely be the catalyst for buyouts moving forward.
The Players
Many groups have joined the acquisition fever. First, we have private equity. This group raises money from high net worth individuals, companies, retirement systems, pension funds and university endowments. Private equity usually exits the business after a hold of five to seven years. A portion of these equity groups are strictly financiers that are dependent on management to successfully grow the business. Others have more experience in operations, and usually partner with seasoned managers who are experienced in the industry to help the newly combined entities unlock value. (To find out more about private equity, see Private Equity Opens Up For The Little Investor.)
Hedge funds have also been more active in the marketplace. While these groups have been traditionally flexible in the approaches they have used, they are developing an increasing appetite for acquisitions. Additionally, special purpose acquisition companies (SPACs) are a relatively new acquisition vehicle that principally started in 2005. SPACs are acquisition companies that are funded with public money. They are raised solely for the purpose of acquiring a company. What makes them especially hungry is that their charter often requires them to acquire a company within 12 to 24 months, otherwise investors lose a portion of their committed capital. (For more see, A Brief History of the Hedge Fund.)
Mezzanine firms, which traditionally have played a financing role, also have conducted acquisitions. Additionally, the large investment banks have been very proactive in acquiring companies on their own accounts. Not only do they present companies for acquisition, the investment banks themselves are sourcing for good companies to buy.
Finally, management groups - former CEOs and seasoned executives - have turned to financiers and equity partners to help orchestrate management-led buyouts (MBOs). Many are successful in obtaining financial backing because their role in helping to consolidate fragmented industries has proved to be a lucrative formula for increasing enterprise value.
What do the major players look for?
Acquirers look for platform, cash-flow companies with the following general criteria and profile:
1. strong, sustained growth
2. a business model not particularly tied to commodity prices
3. an operation that provides niche products and/or services
4. a simpler, easy-to-understand business
5. room for higher revenue through internal, organic growth as well as through acquisitions
6. capable management team
7. ability to sustain margins
8. diversity in customer base
9. current shareholder(s) willing to leave a portion of the equity for a "second bite at the apple"
In today's market, stories circulate among M&A professionals regarding exorbitant multiples being shelled out in order to acquire a company, both on middle market and large cap transactions. Jack Welch, former CEO of General Electric Company, often regarded 30% premiums over fair market value as a dangerously high price to pay for an acquisition. With the directive to extract returns for incoming shareholders and to justify such premiums, acquirers are pressured to tack leverage onto the newly acquired company's balance sheet in order to increase return on equity (ROE). With higher leverage, unfortunately, comes increased risk. Volatility in the cash output of a company can result from an economic, industry, or cyclical downturn, and the company may not be able to service the recurring, increased interest expense.
Acquirers have turned to several important strategies to compensate for risks associated with paying higher multiples in an acquisition.
* Many partner with intermediary and professional organizations to find good companies that produce a healthy stream of cash over the long term and have demanded sustainability and insulation features in case of a downturn. Deal sourcers have traditionally partnered with M&A firms, investment banks and business brokers. Given today's market, such partnerships are critical. For instance, many acquirers now emphasize relationships that they hope will yield multiple transactions, as opposed to one-off transactions on a case-by-case basis.
* Higher bonuses for introducing potential sellers are also becoming more common. These take on the form of additional cash incentives, higher commissions as a percentage of transaction value, equity participation in the deal, and opportunities to provide financing (and therefore charge interest) to fund a transaction or board participation.
Putting the Deal Together
Business development and deal sourcing executives are also looking to accounting firms, lawyers, stock brokers, estate officers, consultants and financial advisors to source deal flow. Accounting firms and lawyers, either through their current or former client relationships and extensive networks, are often aware of private companies that may take a development meeting from an intermediary acting as agent on behalf of a potential acquirer. Professionals like these are a large pool of M&A intelligence and can often possess inside knowledge about a company - including operations, financial statements, legal issues, and family situations and/or eventualities. The information they provide is leveraged to increase the likelihood of an acquisition event for an investing group.
Thus, the M&A marketplace is seeing a much higher level of buy-side work done by intermediaries and professionals. When investment banks and M&A firms, for instance, represent a seller and take his company to the market at full auction, they inform a wide array of potential acquirers. The auction process makes a successful transaction a nearly improbable event for most investment groups. When they hire intermediaries, however, they can task these agents to act on their behalf and conduct search assignments that meet certain investment criteria. By being able to connect with several potential sellers, rapport can be built, information can be shared and both parties can more quietly explore the possibility of a business combination.
Conclusion
The rise in new acquisition firms along with the infusion of foreign capital spells trouble for many investment groups not using strategies that will enable them to effectively acquire good companies. It will also likely lead to even more aggressive approaches such as an outright purchase of a M&A firm in order to fully and exclusively leverage its procurement capabilities. The world of M&A activity is often complicated, but one can quickly gain a respectable understanding of this market by focusing on the players and the key features those players look for when seeking strategic alliances.
by Marv Dumon, (Contact Author | Biography)
Marv Dumon serves as a mergers and acquisitions advisor for a middle-market financial services firm specializing in industrial and energy companies. He maintains established relationships with more than 500 mid-market private equity firms. He also serves as a national business and finance columnist for Examiner.com. Dumon's background includes experience in consulting, finance and operations with several organizations including two S&P 500 companies. He received a Bachelor of Arts, a Bachelor of Business Administration and a Master of Accounting from the University of Texas at Austin.
LOOK they are not asking for dilution they are protecting those shares buy making sure that Jared can not sell them before the deal is done
**Why would a prospective buyer ask for dilution???
I used 40% because that is what the profit margin was from last year but don't forget at the open house Jared stated the Profit margin could be higher then 55% for some of the product so even giving someone 10% to sell the product you are still at at least 40% profit
only half that after the taxman gets his share
Yeah Jim you would think he would get a lot more than my figures I like to stay on the safe side as to not get my hopes up too high........... so many PPL don't realize what EESO is worth short term let alone long term THIS IS BIG PPL
YES you should have picked up more shares
it was the average PE for Personal & Household Prods.
Industry last time I checked but I see it is now at a PE of 13.3 so numbers a bit off but still in ballpark
NO IT WOULD NOT