Replies to post #344265 on Avid Bioservices Inc (CDMO)

[djohn]

Then a suitor can begin to depreciate the new manufacturing assets. Accelerated depreciation does wonders to the bottom-line .

Then a suitor could move there customers over to the new facilities and manufacture $400 mil in per year in their business for the cost of $280 mil per year(assuming a 30% op margin)

With synergies decrease other operating costs by $30+ or more in sales and administration costs.

Think any possible suitors are doing the calculations?

[swg_tdr]

tech0200, highly over estimated. Saw a cautionary statement in prior annual report on this. Also, carry is time limited and profits will not escalate very quickly. Some tax accountant here can build us a model, if not Protector : )

Also any acquirer's tax benefits are circumscribed.