Feb 11, 2010 (BAYSTREET NEWSWIRE via COMTEX) -- Washington DC,
A new report studies the strengths, weaknesses, opportunities, and threats (SWOT) to Tyco's proposed acquisition of Brink's Home Security, highlighting both concurring and opposing positions of the accepted.
Karin Kusuda, contributor to the report comments, "Both Boards were relatively quick to agree to the takeover, however, there are adverse opinions in both camps that have considerable merit and may receive closer examination." The Research Connect report points to the 2007 acquisition of HSM Protection Services as a source of considerable contention. Kusuda continues, "....As a multiple of recurring monthly revenue (RMR) Brink's is priced at just 45.08x, considerably less than its smaller competitor HSM Protections Services, which was acquired by Stanley Works with a multiple of 60x." The report weighs other suggestions by detractors that point to valuation concerns. Kusuda comments, "objectivity is a standout issue in a deal of this type when you have a valuation advisor, Morgan Stanley, that holds 3.72% of Brink's shares outstanding, and stands to make over $90 million if the deal goes through". These issues and others may increase the ability of minority shareholders to convince Tyco to change its offer," says Kusuda.
Key highlights of the SWOT report:
1. 100% Independent Analysis
2. Motivation Behind Transaction
3. Market Drivers and Transaction Expectations
4. Share Price Analysis
5. Regulatory Issues
6. Management Analysis
7. Debt Analysis
8. Financial Analysis
10. Under or Overpayment Analysis and Conclusion