Brinks Presentation

Brink’s Company: Activists push for a spin-of
Masters in Finance | Applied Corporate Finance

• April 20th 2015

Duarte Marques 989
Mafalda Oom Torres 948
Teresa Botelho Neves 1029
Francisco Vieira de Campos 960
Gonçalo Pereira de Almeida 1034

Nova School of Business and Economics

Agenda

Executive Summary
Industry Overview
Brink’s Company
Conglomerate Discount
Activists
Issues being target my activists
Brinks is undervalued by the Markets
Alternatives to Spin-offs
Value created by Spin-offs
Valuation
Final Recommendation

Agenda

Executive Summary
Industry Overview
Brink’s Company
Conglomerate Discount
Activists
Issues being target my activists
Brinks is undervalued by the Markets
Alternatives to Spin-offs
Value created by Spin-offs
Valuation
Final Recommendation

Executive Summary
The decision of performing a spin-off follows pressure on the company from three activist shareholders who felt that Brinks has been chronically undervalued and separately it would be worth more than combined
Since Top Management and activist shareholders were not align in terms of what was best for the company, the case presents both sides. Moreover, an assessment of the arguments was performed
Nevertheless we have to bear in mind that Brink’s Company is made of two different business that seem to share very few operational synergies, which may be explained by the conglomerate discount that the companies was under
Also alternatives to the spin-off were take into account, however we did not exploit in so detail as the spin-off, since it was the main issue in the case

Agenda

Executive Summary
Industry Overview
Brink’s Company
Conglomerate Discount
Activists
Issues being target my activists
Brinks is undervalued by the Markets
Alternatives to Spin-offs
Value created by Spin-offs
Valuation
Final Recommendation

Industry Overview- Brink’s Inc.
Globally

United States

$14bn
•

Global market for security logistics
• Projections to grow

35%
Market
Share

Global Market Share
Brinks;