Astraeus
Join Date: Jun 2004
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Company valuations
Never bought an airline, but bought/sold several companies.
Valuation is very difficult. There are three ways:
1. Book value (value of assets), usually only used when business is loss-making or in receivership.
2. Future value of free cash flow. Simply, how much the business will make, in today's money, in the future. So what discount factor do you use (inflation/interest rates), and how far into the future do you project? Mainly applicable to contract-backed businesses.
3. Price-earnings multiple. If this years profits are £x, multiply by 6 (for a private company), 10 (for a business with prospects), or 12 if you're selling.
As I said, it's difficult. But if the vendors want to sell, and a buyer wants to buy, they'll find a way!
3.
Valuation is very difficult. There are three ways:
1. Book value (value of assets), usually only used when business is loss-making or in receivership.
2. Future value of free cash flow. Simply, how much the business will make, in today's money, in the future. So what discount factor do you use (inflation/interest rates), and how far into the future do you project? Mainly applicable to contract-backed businesses.
3. Price-earnings multiple. If this years profits are £x, multiply by 6 (for a private company), 10 (for a business with prospects), or 12 if you're selling.
As I said, it's difficult. But if the vendors want to sell, and a buyer wants to buy, they'll find a way!
3.
Join Date: Jan 2005
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Well I think that at least part of the equation has to be the existing slots at LGW, they are becoming rarer and rarer, also the oil contract work is VERY profitable.
I wonder what they will do with the crews, I hope its just a uniform change when its sold
I wonder what they will do with the crews, I hope its just a uniform change when its sold
Join Date: Jan 2006
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Pricing a sell
As previous, have never sold an airline. But in the manufacturing sector, where you have fixed assets, on-going contracts and a tangable product or service products (ie not pr-media-consultantcy).
I have always worked on the assets at near fire sale value, possibly with a debt element and a multiple of profit b/t this will depend on the future prospects of the bussines but is normally between 6 and 10 times, 12 would have to be the top end and need a very secure future. Of course all of the above is also important to how much a bank will lend to fund the deal.
As for the airline in question. They do seem to have a niche market and a good repuation / public perception. Some of that must be down to operating reasonable fleet in the middle market (ie not some old 732's feeding from the floor)
As previous, have never sold an airline. But in the manufacturing sector, where you have fixed assets, on-going contracts and a tangable product or service products (ie not pr-media-consultantcy).
I have always worked on the assets at near fire sale value, possibly with a debt element and a multiple of profit b/t this will depend on the future prospects of the bussines but is normally between 6 and 10 times, 12 would have to be the top end and need a very secure future. Of course all of the above is also important to how much a bank will lend to fund the deal.
As for the airline in question. They do seem to have a niche market and a good repuation / public perception. Some of that must be down to operating reasonable fleet in the middle market (ie not some old 732's feeding from the floor)
Join Date: Feb 2006
Location: Glasgow
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Astraeus
Hey, has anyone heard about Astraeus basing a 737 at PIK for summer 2007, according to the Seguro Holidays booking site the aircraft operates a pretty full schedule, some flights doing a W pattern with Manston. According to the taxiwayalpha site, they are to also do some longer charters to destinations outside of Europe, Egypt? Anyone at Astraeus in the know? 
Join Date: Jul 2006
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ASTRAEUS FOR SALE!!!
Astraeus has been sold........The company will not go public or advise employee's who has aquired the airline until mid August. I just Hope the crew will be looked after in this sale. 
Is this True?
Is this True?
Join Date: Sep 2001
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Astraeus Sale
Astraeus have appointed Cavendish Corporate Finance to negotiate with (unsolicited) would-be buyers.
However, Jonathan Hinkles (Commercial Director) said "Our existing shareholders are happy with the progress of the company and may conclude at the end of this process that we wish to retain the structure as it is"
Source: Airliner World - August 2006
However, Jonathan Hinkles (Commercial Director) said "Our existing shareholders are happy with the progress of the company and may conclude at the end of this process that we wish to retain the structure as it is"
Source: Airliner World - August 2006
Join Date: Aug 1999
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Go on then, dont keep us hanging in our straps............who does rumour control think is buying Astraeus?.....I'll go with the Post Office for starters, plans to convert all the 75's to Parcel vans and rival DHL, looking good in pillar box red. Great money savings on uniform- pair of Dm's and shorts- finally I get to wear elasticated waistbands again..
But then again...no.
But then again...no.
