MCClown


Actually less than $.70 per share--remember the new owners also get the cash that is left over from the sale of Enzolab to Lab Corp.
 
Actually less than $.70 per share--remember the new owners also get the cash that is left over from the sale of Enzolab to Lab Corp.
It’s better than bankruptcy. The acquirer will do what the board failed to do which is turned the company around to make it profitable and then sell it in the open market. It will require significant restructuring in terms of Human Capital, Outsourcing of IT and manufacturing to a less costly section of the world, a more robust distribution network, as well as the elimination of hard and real estate assets. We should see a significant downsizing of staffing, eliminating layers management, but also adding a more robust and centralized sales team and perhaps the relocation of the worksite to a lower tax and lower $ per sq footage facility. We should see a significant lowering of expenses which will show immediate positive net profit margin results. Good luck to the existing staff, whomever ends up remaining to drive profitability
 
It’s better than bankruptcy. The acquirer will do what the board failed to do which is turned the company around to make it profitable and then sell it in the open market. It will require significant restructuring in terms of Human Capital, Outsourcing of IT and manufacturing to a less costly section of the world, a more robust distribution network, as well as the elimination of hard and real estate assets. We should see a significant downsizing of staffing, eliminating layers management, but also adding a more robust and centralized sales team and perhaps the relocation of the worksite to a lower tax and lower $ per sq footage facility. We should see a significant lowering of expenses which will show immediate positive net profit margin results. Good luck to the existing staff, whomever ends up remaining to drive profitability
Finally a good analysis but too optimistic. I believe they will strip and rebuild for a significant return. Based on their revenue they are significantly over staffed. Outsourcing and scaling headcount is a good solution and I agree with relocating to a lower cost state but also I believe licensing their IP and becoming a full time distributor with a robust e-commerce solution and using contract manufacturing to shave the manufacturing costs would be significant. Too bad this wasn’t done sooner so we all could have maximized our returns on stock but the amount of inefficiencies would have required a different level of expertise.
 
Finally a good analysis but too optimistic. I believe they will strip and rebuild for a significant return. Based on their revenue they are significantly over staffed. Outsourcing and scaling headcount is a good solution and I agree with relocating to a lower cost state but also I believe licensing their IP and becoming a full time distributor with a robust e-commerce solution and using contract manufacturing to shave the manufacturing costs would be significant. Too bad this wasn’t done sooner so we all could have maximized our returns on stock but the amount of inefficiencies would have required a different level of expertise.
I agree with both this and the prior post but I think the answer will rest with the acquiring entity. Why would a PE firm buy into this? Battery Ventures has amassed an impressive portfolio of assets while raising multiple billions across their funds. At the end of the day, they are looking to turn a profit on their investment. Other than cash and real estate which are easy to value, the company's asset is their customer base and the associated products they purchase. Battery has several investments in the Life Sciences tools space--as such, I would expect them to pick apart the Enzo assets that would best allow them to combine them with one or more of their current portfolio companies to create an entity with a higher value that can, in turn be flipped to another PE firm and/or acquired by a larger life sciences company. They could, for example, bolt on Enzo's products into one of the Analytichem groups, or perhaps tuck them into LICORbio. In any case, I would surmise that they would view most of the current Enzo operations to be redundant and quite inefficient as they have not been able to show any level of profit even accounting for the costs of being a public company. Perhaps this larger entity can negotiate lower costs for the items that Enzo currently does not manufacture in-house and I would absolutely expect Battery to move what manufacturing the company still does to a less expensive place than Long Island, NY. As far as the IP goes, the company long ago "licensed" whatever had value by way of the myriad of settlements agreed to under prior leadership, thus I don't see any real further value to whatever patents that are still active would bring. I'm really unsure how much goodwill the Enzo brand actually has at this stage as many of the products they sell now started under different brands from the acquisitions done in the past. I imagine the market will know once the long tenured and/or senior Enzo team starts updating their Linked in profiles with either "retired" or the dreaded green "looking for work" frame.
 
I agree with both this and the prior post but I think the answer will rest with the acquiring entity. Why would a PE firm buy into this? Battery Ventures has amassed an impressive portfolio of assets while raising multiple billions across their funds. At the end of the day, they are looking to turn a profit on their investment. Other than cash and real estate which are easy to value, the company's asset is their customer base and the associated products they purchase. Battery has several investments in the Life Sciences tools space--as such, I would expect them to pick apart the Enzo assets that would best allow them to combine them with one or more of their current portfolio companies to create an entity with a higher value that can, in turn be flipped to another PE firm and/or acquired by a larger life sciences company. They could, for example, bolt on Enzo's products into one of the Analytichem groups, or perhaps tuck them into LICORbio. In any case, I would surmise that they would view most of the current Enzo operations to be redundant and quite inefficient as they have not been able to show any level of profit even accounting for the costs of being a public company. Perhaps this larger entity can negotiate lower costs for the items that Enzo currently does not manufacture in-house and I would absolutely expect Battery to move what manufacturing the company still does to a less expensive place than Long Island, NY. As far as the IP goes, the company long ago "licensed" whatever had value by way of the myriad of settlements agreed to under prior leadership, thus I don't see any real further value to whatever patents that are still active would bring. I'm really unsure how much goodwill the Enzo brand actually has at this stage as many of the products they sell now started under different brands from the acquisitions done in the past. I imagine the market will know once the long tenured and/or senior Enzo team starts updating their Linked in profiles with either "retired" or the dreaded green "looking for work" frame.
Dont try to over analyze. There were no other takers, so Battery offered a "fire sale" price and BOD agreed rather than see KC and her band of morons run the place into the ground.
 
Dont try to over analyze. There were no other takers, so Battery offered a "fire sale" price and BOD agreed rather than see KC and her band of morons run the place into the ground.
So once the deal is closed what is left of the company? Even for a bargain basement price the PE guys have to have a plan.
 
Dont try to over analyze. There were no other takers, so Battery offered a "fire sale" price and BOD agreed rather than see KC and her band of morons run the place into the ground.
Agreed. They can sell pieces of it to larger entities. Ie. they can sell their manufacturing to another CM and let Enzo become purely an Ecom site. (No brick and mortar) or sell it to a larger ecom site. The sky’s the limit on how battery can get their return on investment. Too bad shareholders are left holding the bag.
 
So once the deal is closed what is left of the company? Even for a bargain basement price the PE guys have to have a plan.
They need to get rid of the 75% of those employees that are dead wood. Not coming in, leaving early, coming in late, staying home and not be productive. Overpaid for doing nothing. That would cut down expenses immediately. I would be happy because these colleagues of mine are just milking it and not caring about the success of our company.
 
They need to get rid of the 75% of those employees that are dead wood. Not coming in, leaving early, coming in late, staying home and not be productive. Overpaid for doing nothing. That would cut down expenses immediately. I would be happy because these colleagues of mine are just milking it and not caring about the success of our company.
Losing for two years after selling the lab,
And pretending to run a company
PRICELESS
 
They need to get rid of the 75% of those employees that are dead wood. Not coming in, leaving early, coming in late, staying home and not be productive. Overpaid for doing nothing. That would cut down expenses immediately. I would be happy because these colleagues of mine are just milking it and not caring about the success of our company.
KC strutting around like she engineered a huge win rather than the ultimate con job for shareholders.
 
I would like to know- when they sold the lab did they try to sell life sciences? If so, what offers did they receive- were they better than this crap? And why did those deals crash? I hope a law firm looks into that.
 
I would like to know- when they sold the lab did they try to sell life sciences? If so, what offers did they receive- were they better than this crap? And why did those deals crash? I hope a law firm looks into that.
Jefferies tried to generate interest, but lipstick on a turd was fairly obvious. All smoke and mirrors, investors sniffed around but ran the other way.
 
KC strutting around like she engineered a huge win rather than the ultimate con job for shareholders.
Are you serious? Forgetting the shareholders for a minute, do the employees not understand what this means? PE firms don't like to lose on their investments. If the company as is is losing money, who think that they would just continue business as usual?
 
"Forgetting the shareholders for a minute, do the employees not understand what this means? PE firms don't like to lose on their investments"

Forgetting the shareholders is the main product,
PE is buying real estate and cash residual
Likely 90% of employees will gone in 6weeks
 


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