PRO BUYR since you have the largest position amongst any 10 of us (and you probably did not see my original post), perhaps the next time you email Jim you could asked him to address this issue.
What is the risk the MSE acquisition will be delayed or cancelled because both parties could not agree on a purchase price. It is a valid concern. The Federal $100 mil contract is a 1 year contract with four 1 year, optional renewal periods. There is a real risk the Federal contract could be cancelled in years 2, 3, 4 or 5 by the government. (Remember we will have Presidential elections in 2012.) As a result, in negotiating an acceptable purchase price... James Fallacaro would want to minimize this cancellation risk by not overpaying for MSE. Whereas, MSE would want to be properly compensated for potentially an additional $80 mil in revenue in Years 2 - 5. We are talking big dollars here and I don't see either GTGP or MSE taking the issue lightly. I see this as an issue which could potentially delay the acquisition till Oct/Nov 2011, or at worst cancel the MSE acquisition.
My question to Jim Fallacaro:
Is there an agreed upon methodology which will be used by both parties to determine the present value of Federal contracts with multi-year, optional renewal periods?
Disclosure: Long GTGP but not happy the potential $100 mil Federal contract could imo push back the closing date of the MSE acquisition to late August 2011 (at best) and Nov 2011 (at worst). All imo
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