Possible Pipe dreams and other considerations

Let's get impossibly theoretical for a bit of fun.... All of these below are flash pan of half baked ideas and considerations.


This announcement has interesting implications for the business.

International Valuable Logistics division (IVL) has a recurring revenue nature to the business and assists in handling with the lumpy nature of FFT division and BQT revenues. A spin out would lay bear FFT and BQT revenues to its loan-some. Management of Ava would know bottom line that losing the reliability of AVA IVL revenues has pretty big implications for the rest of the business. Addressing this issue there would be three possible remedies.

1) FFT's successful implementation of the Indian military deal would go a long way to underpinning security of revenues for the next two years at a good gross profit. I just wonder if Ava IVL has taken a clip to facilitate, here is hoping not if a spin out would occur.
2) The parent company AVA receives a capital kick, for divestiture of AVA IVL thereby providing sufficient capital through the next lumpy revenue window.
3) Capital raise from us poor schmucks again if no Indian military deal materialised.

This was a pretty vague announcement about how things could possibly playout, for Ava IVL...

The continual growth of Ava has created the interest in others to look at Ava. This could mean a couple of things, Ava IVL could be spun out and capital returned to the parent. If it is spun out it could form a separate entity or part of an amalgamation IVL businesses.....now returning to Ava's phenomenal growth and its amazing caliber of staff this could mean staff that Ava IVL could head this New IVL Co

why would Chris Fergus step down from CEO and with immediate effect and give himself a title demotion if it wasn't for something bigger. We know Chris is incredible with the corporate politics playbook if we were to look at back at the last 2-3 years.....everything happened by his playbook.

Now if Ava IVL is spun out it and pumped with some capital it could in fact be charged with cleaning up and acquiring some clever but smaller IVL service providers....Now if that is the case the strategic relationship with FFT/BQT is unlikely to be dissolved which means the FFT/BQT defacto sales force will expand.

Or the alternative is that it is not spun out at all......I mean what is the need, the corporate structure is already separate from FFT and BQT...So the capital could be syringed straight into the AVA parent co with very deliberate mandates of growing the AVA IVL business....

This could be absolutely nothing in relation what's going on but I did find Scott Basham's previous employer of interest...
In May 2017, Advent International Private Equity Group invested alongside Bpifrance to bring together the complementary strengths of Safron I & S (Morpho) abd Oberthur Technologies. Combining Morpho's leadership in end-to-end biometric and identity solutions with OT's leadership in embedded digital security, the new IDEMIA identity was unveiled on 28th September 2017.

Here is my pipe dream....
I really hope the Indian deal comes off , Ava IVL is spun out to head NEW CO IVL providing current AVA shareholders retain a non diluted shareholding in the new co and then strategic partnership with FFT/BQT gets its chance to be enhanced and fly....

DO YOUR OWN RESEARCH...........ALL OF THIS IS PURE SPECULATION but it was fun anyway.