Foe that to happen, I would think GV needs to prove that they are capable of winning large contracts on a regular basis,... And therefore capable of reducing Quanta's revenue through competition. On the other hand GV now possesses a medium sized & experienced work force/ equipment fleet with a good customer base, which could give Quanta an instant $80-100 million yearly revenue boost. GV has sold it's core businesses in the past. What do you think would be a realistic price for South East Power/ Power Corporation of America?
I can't give you a value on South East Power. I do know that the Head of marketing of South East Power is a former Quanta administrator. I know his back ground very well. He has an excellent track record. GV is smart to have him on their team. It seems GV is in the beginning stages of acquiring electrical contractor companies (C&C) as Quanta has done over the many years. You make very good points in your brief outline as to what value GV could bring to Quanta as well as the motivating factors in a possible case for a buy-out. I believe in the absence of attaining the big contracts, GV is a profitable force as Dalton has diagramed out in his posts. Now if you add being awarded huge contracts on top of their growing core business, that's frosting on the cake.
Just an off-hand ballpark guess.
At GV's current size + C&C, I see 120 million per year rev. maximum. More if they keep growing organically or with acquisitions. Fully taxed, and with consideration for future special charges, I think a realistic net income going forward to be 8%, = $9.6 million per year. At this rate, in 2 1/2 years book value would be $2 per share... Add that to whatever % of a return Quanta expects to receive. To get the 8% return, = $120,000,000, or 4.80+ per share. 4.80 + 2.00 = $6.80 + per share. JMHO