Avanti Capital, delisting risk, Dhir India, Eurovestech, GPG, Gresham House, IRR, JSM Indochina, Liquidations, LMS Capital, Mazars, Ottoman Fund, Private Equity Investor, Siteserv, South African Property Opps, Spark Ventures, Trading Emissions, Trinity Capital, Veris plc, wind-down
Continued from here:
i) Liquidations are top of the heap for catalysts! They’re usually only announced after a company has sold all/the majority of its assets (or occasionally its business(es)). They offer the best prospect of a highly certain final asset value, to be realized within a reasonably short/well-defined timeline. They’re usually concluded within 6 months to 2 years, and any decent BoD/management will provide an estimated total distribution amount (net of all expected liquidation expenses) and schedule.
Of course, if they’ve an ounce of sense, they’ll be as conservative/pessimistic as possible with their forecasts, so any surprises should hopefully be positive… (In fact, they should recast the B/S with all future expected liquidation expenses included as a provision – i.e. accounting on a liquidation basis, not a going concern basis). In aggregate, these features mean that liquidations have v attractive IRRs and Expected Value Returns!