The passage of tax reform last December gave investors greater security when it comes to corporate tax rates in the near future. One consequence is the increased interest of some investors in acquiring payment rights under existing tax receivable agreements (TRAs). In short, ACCORDS are agreements made by a company (a “pubco”) as part of an IPO to monetize Pubco`s tax attributes after the IPO for the benefit of owners prior to the IPO and investors who acquire payment rights under TRAs to such pre-IPO owners. Our previous article on ARTs focused on some ways in which tax reform could affect the value of TRA payment rights. Since the introduction of tax reform, we have seen a marked increase in investor interest in the acquisition of TRA payment rights, including through hedge funds, family offices and private trust funds. This article describes some of the functions of an AED that an investor should analyze before acquiring rights under an AER. Our intrinsic value calculator estimates what an entire company is worth using up to 10 years of financial ratios to determine whether or not a stock is overvalued Any TRA SPECIFIC investment should be taken into account in light of the specific provisions of the TRA and the facts that apply to the Pubco concerned. These concrete facts may raise specific questions of diligence. However, there are a number of issues to consider for most PURCHASEs of TRA payment rights, including: Delete data columns and browsing to see much more content and tables in a view Getting a look at balance sheets, revenues, transactions and cash accounts without having to find in Annual and Quarterly Reports Carvana Co.
is a holding company and not an operating company. Carvana Co. provided additional information on its sec presentation as an exposure Our Financial Stability Reports use up to 10 years of financial indicators to determine the health of EPS, dividends, book value, equity return, Current Ratio and Debt-to-Equity of a company. Compare this 10-K management report with its predecessor by reading our highlights to see which texts and tables have been deleted, added and modified by Carvana Co. Class A common shareholders have less than 3% of the voting rights. Export annual and quarterly reports to Adobe PDF, Microsoft Word and Excel for offline viewing, Comments and analysis Please wait while we insert the requested 10-K report or click on the link below: For more information on investments in TRAs, please contact one of the following members of the Ropes-Gray team: Read the positive and negative feedback from management in their entirety without having to find them in a 10-K/Q.