I have my own ideas on this, but rather not say as it has been many years since I did managerial finance and my assumptions are way imperfect. But based on the valuation they had in the accounts, the reported EBITDA, the high WACC and a tax rate of 30%, I came pretty close on what they said. Naturally the calc relies on not taking income streams into perpetuity and ending them when contracts cease as per the notes to the accounts.
Essentially, if all income streams ended in 5 years (no renewal or new contracts etc) what would you pay today for 25% of TSI based on future cash flows as it was then. I have a feeling they may renew contracts and grow the business, but the accounting valuation needs to be based on what is in writing. Time will tell how bad my guess is or isn't.
Cheers
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