Muscle Pharm Corporation (MSLPQ)

[TheExpertHimself]

lol, you don't get 20% of profits by owning 20% of a company....what make you believe that?

Musclepharm is not gonna buy it for $200 million, mark my words.

HIG Capital is similar to Bain Capital....HIG buys one or two companies in a sector for like $70 million, provides some funding and cleans up balance sheet, combine assets if necessary and sells again for a profit...like $220 million.

These assets are just not that attractive again....and the buyer, Musclepharm is complicated....so, I assume that both parties see some benefits of cooperation and that HIG Capital really is the one that is eager to flip this asset, and arrange financing of it.

Externally, nobody is gonna finance this deal without some cut...my guess is that the cut will be whatever the other currencies lost versus US dollar over the last 12 months, like 25-30% off.

HIG Capital will still make a little money...but not the typical 80% to 100% it makes on lots of deals.

The timing was horrible for the investment, and the assets are better in Musclepharm's hands.

HIG Capital gonna try to squeeze every penny out of Musclepharm....but I think a deal is possible.