Denise said something interesting that triggered a
Post# of 32637
She was talking about giving investors the data so they can do their own valuation and when they do that, they may see that Market is valued at a standalone more than even Verb as a whole.
Those that have been following my posts know that I've been big on doing your own valuations and comps, but you need pieces of data to do it and I've been posting some of those data points that the company has shared.
To further expand on the parts are worth more than the whole, another company I've invested in is going to do a spin off. Not maybe, could be, might. They discussed in the past, maybe 3 different options, but it seems they've decided the right course for them is a spinoff.
So of course some, that have no clue what a spinoff actually is, start getting very upset that subsidiary is getting sold. Oh and shareholders are getting screwed. Now where in the world would they get those crazy ideas, eh?
So if Verb's sum of the parts is worth more than the whole, makes sense to me to start thinking about a spinoff. Hasn't been brought up in years.
It would allow Verb to be profitable right away and reap some rewards. Push the fund raising to the spinoff and unlock the value of both. Here's a company that just did that...
Enovis just did a spin off of ESAB which is now valued at $3B!
- Enovis is now valued at $3.60B
- Enovis shareholders received one share of ESAB common stock for every three shares of Enovis common stock held
- 90% , of ESAB’s common stock were distributed to Enovis shareholders
- 10% , of ESAB’s common stock, were retained by Enovis
- Intends to divest such shares within 12 months after the Separation in a tax-efficient exchange for its outstanding debt .
- Enovis effected its previously announced reverse stock split of all issued and outstanding shares of Enovis common stock at a one-for-three ratio.
Yeah the $3.6B company did a RS and guess what. The stock wasn't effected.
With this spinoff, Enovis managed to not only unlock $3B of value that wasn't reflected in their sp, but also pay off debt. 90% of that $3B went to...
Get this... SHAREHOLDERS!
Many other companies did that. Especially when the parent is getting rope a doped.
Might be a touch too early for Verb to do a spinoff, but the company can surely talk about it, if it's in the cards in the next year. They could raise even more dough for Market if ever needed when just Market alone is valued at $1B. For any doubters, just looked at the valuation of the other live shopping.