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Was that a leading question? <g> Whatever valuation has been determined, or proposed, for each of the companies involved in a merger or acquisition is typically validated by a "fairness opinion" issued by a law firm engaged by that company. As I jokingly implied in my prior post, these opinions are VERY expensive (over $100,000 in legal fees is standard here in NYC) and can be extremely difficult to produce, especially in a situation like this in which one company is not publicly traded and the other trades as infrequently and erratically as AVAL does. There is no way for anyone attempting to value AHS to use "market cap" as one valuation guideline, since there is no public market for AHS stock, and the current "stock price" of AVAL is almost equally unknowable. Is it the last trade (.25), current bid (.16) or current ask (.28) or an average of the latter two (.22), or some combination of all three? OR: none of the above? And, of course, the larger question is whether the "value" of AVAL as a company -- including, apparently, a few hard assets, some existing employment arrangements with some good people, a smattering of existing contracts and/or valuable leads for future business, and a pinch of "world-class" intellectual property -- is even reflected in the current "stock price," whatever that is. At this time, suffice it to say that I would suggest not. |
