May. 13 at 10:02 PM
$REZI Some of you know the company is separating and the 2 entities will be (1) a manufacturer and (2) reseller. The reseller unit is truly worthless and will trade at around 4.5x EBITDA. It has zero moat, no technology, no nothing except wholesaler relationships. The manufacturer is the one that could trade around 10-12x EBITDA but once people realize there's really no technology, the multiples could really shrink. So how was this company classifed as a tech hardware company? PR to get higher valuation multiples. It's sad but Morgan Stanley played a pivotal role in hoodwinking investors: MS did a 2020 equity offering as lead book-running managers. When REZI acquired Snap One, MS acted as M&A advisor and provided financing for the transaction. Any patents the company has are outdated and largely irrelevant. The company sells its goods largely based on customer-wholesale-sales channel relationships, not based on anything proprietary offered through ownership of technology.
