The Continued Struggle

Each day brings sad news from the former Quinn Group and yesterday was no better but nevertheless it’s important that we all stand together and try and resolve this issue.

Your continued support is greatly appreciated and we ask each of you one and all to do your utmost in the coming weeks to try and get the Board at Quinn Group too face reality as they know full well that they cannot continue to keep going down the existing track as its destroying the Quinn Group, people’s lives, the community and creating anger and hatred in the community as neighbour is turning against neighbour in desperation. This personal vendetta that Paul O’Brien has against Sean Quinn and the former Quinn management needs to stop.

We ask everyone to take a step back and see the awful harm that this is causing.

As a united team we can still salvage the Quinn Group but even with the new management it will take the support of the community like never before to turn things around.

Last week we mentioned while Kingspan was blooming Quinn Group was disintegrating and it now appears that it is in an awful state (QG) much worse than was first envisaged. “I will state my views and you can make up your own minds”. Comments are very much appreciated.

I am sure that John McCarthy, Ernie Fisher and John (Bosco) O’Hagan would not make a bid for (QG) if they didn’t have the money available. Some of these guys are in business for over 40 years. Why would they risk their reputation if they were not serious?

If you advertised a car or house for sale would you veto any prospective buyers beforehand? Would you go around to different houses in the locality and tell your neighbours no point dealing with that bunch as they don’t have the money?

Would you buy a house or car if you couldn’t first see the house both inside and outside or test drive the car?  You would need to make sure that before you put your money on the table that the car has an engine and will start. Check the body work over for cracks or any other concealed repair work.  You would also make sure the house has interior walls, kitchen, bathroom etc. Well at least I would. Would YOU not?

Now when it comes to the sale of the Quinn Group that becomes a different ball game completely. QBRC asked to see the books which I am sure would be completed under some type of confidentiality document signed by both sides. This would be the norm in any case I presume?

Not so with Quinn Group. QBRC cannot see the books for forever reason.

So let’s now look at what is involved in a sale “well at least the very basics”.

If a company’s EBITDA (earnings before interest, taxes, depreciation, and amortization) is 50 million per year the company is usually worth between 5 and 8 times that amount. So let’s say the EBITDA is 70 million so you multiply that amount by 5 up to 8 even as far as 10. So in this case we will say 6.5%

That values the company at £455 million. I am not an account thank god (Sorry Accountants) but what if the EBITDA is not as stated in the published accounts and forecasts?

Suppose for example the books at Quinn’s are not correct and not showing the correct EBITDA and the company is only worth £100 million.  That would leave the sellers of Quinn Group in a very awkward position.

What would you do if you had had 10 houses or 10 cars for sale and you were hiding something about the goods for sale?  The best option would be to try and sell the houses or cars as individual units as that would attract less attention.

Nevertheless the purchasers are bound by the confidentiality clause so they have to keep their side of the bargain. The only option left for them is back away from such a sale or both parties agree the deal and the sale price for £100 million is kept confidential.

Now if I was the seller and I did not want any of the former management seeing my books for whatever reason I would do everything that’s possible and try and get an outside buyer and keep QBRC well away from my doors.

I am sure it would also be very embassesing if they did sell to QBRC and in 3 to 5 years’ time  (QG) is back up making a profit like it was before the takeover.