Quick Value #308 - Sale + Merge Special Sit

Small-cap financial services transaction closing 2Q26; shareholders get a large cash distribution + shares in NewCo stub

Today’s post:

• Small-cap financial services company selling a division and distributing cash (~76% of current share price)

• Stub shares in newly created BankCo trading at implied 0.4x TBV and 4-5x earnings

• Significant earnings growth potential as balance sheet is repositioned over 2-3 years

For new subscribers — these write-ups are meant to be a “jumping off point” for the idea generation process (i.e. a surface level review). Each write-up includes: 1) company background; 2) why the idea is interesting; and 3) fair value estimate.

Check out past write-ups here and my home base page here.

Recent write-ups include:

• 03/09/26 — CBIZ growth to value transition

• 03/02/26 — Ziff Davis sum of the parts ($)

• 02/16/26 — Recent merger at Dauch yielding huge synergies

• 02/09/26 — Wholesale changes in the VDL portfolio ($)

• 02/02/26 — A look at Allison Transmission’s recent acquisition

• 01/26/26 — Multi-pronged special sit Teleflex ($)

• 01/19/26 — A look at the KBR upcoming spin-off

• 01/12/26 — Supremex is super cheap and inflecting ($)

• 01/06/26 — Shares of Cinemark look beaten down

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