Vivint Valuation Falls $1.5 Billion

By John Honovich, Published Dec 19, 2019, 11:52am EST

Residential market struggles continue. Now, Vivint's valuation has fallen $1.5 billion in its impending merger.

Inside this note, we examine what happened, what is wrong and how this fits into broader troubles for the residential market.

Valuation ****

***********, ****** ********** ****** **** ** go ****** ** * $5.6 ******* *********:

**** ** ****** ******* enterprise ***** ** $*.* billion, ****** ** *********** to **** ******** ** $1.3 ******* *** ****** year ***** *** ******** EBITDA ** $*** *******, implying ** ******** ****** multiple ** ************* **.**.

***, **** *** **** slashed ** **** $*.* billion ** * ************* lower ********,**********:

*** ********* ******* *** initial ********** ***** ** Vivint ** ************* $*.* billion, ******** ** ********* 2020 ******** ****** ******** of ************* *.***

**** ** * **.*% drop ** ********* ** 3 ******.

Debt ***

********, **** ********* ***** to *** **** *************:

*** ***** *** ******** reduced **** *.** ** 3.9x *** */**/**** ******** Adjusted ******, **** ************* all *** ******** ******** to ** **** ** repay ****, ******** ** redemptions ** ******’* ****** stockholders.

**** ********* *** ****** a ******** ** **** debt ****** ******* ******* fear ***** *********** ** this *****. **********, ** September, *** **** *** to ****** ******** ** 4.3x *** *** ** will ** **** ******* to ***** *.

*******, *** ********* ******* plans ** **** ******** to ******* ******, ****** reflecting ******* ****** ******** about **** ******.

Residential *****

***** ** ********* ********** fears *** *** *********** market. *** *******, ********* banker**** **** ****** *** 'bad ******** ******', ****** *** '*** 20 *******', ********* **** ADT, ****** **** ******** and ******. *** ******* are ********** ******** **** stringent ** ******** ** lend, **** ********* *******'* **** ****** stress ** *** *********** market'.

Vivint **** ***

****** *** ******** **** the **** ********** ***** pushing ******* **** * new ********** ** '***** home' ********* *** ** has *****. ***** ***** customer ************ **** *** falling, ** ***** ***** more **** $*,*** ** acquire * ******** *** their ***** ***** **** been ******** ******** ***** the ********* ** **** from **.*% ** **.*%, per***** ** **** **********.

** *** **** ******, Vivint *** ****** *** success ** **** ** door ***** *** *** big ******** ** *** whether **** ***** *** its ********* **** '*****' home' *** ******* *** growing ********* ** *********** tech *********.

Comments (10)

Undisclosed Manufacturer #1

12/19/19 05:20pm

* ******** ** ***** from **** *** *** cost ***** **********, ******* to ****.

* **** ** ***** from ******* ** **** a *** “****** ********* alarm” ***** *** ****** points. (****, ***** *******) What ** ***** **** AI ** ******* *** strange ****** *** ******* you ** ***/****** ******* voice ***********? ***’* ******* an ************!

* ***’* ***** *** “Custom ****” **** **** to ***** ***** **********, but * ***’* ***** there’s **** ******* ** average *********** *** ** much *** **** ************ monitoring **** ******* ** a ********.

Undisclosed Manufacturer #2

In reply to Undisclosed Manufacturer #1 | 12/19/19 05:43pm

****** ***** ******* *** this. *** *** ***** in ******* *** ** goes *** ***** **** to ***** *** ** unusual *****.

Undisclosed End User #3

12/19/19 07:10pm

**** ****** *********** ** their **** *** ***** disciplines *** ****** **************

Undisclosed Integrator #4

12/20/19 08:28pm

* ***** ** *** of ** ******* ** Vivint, **'* **** ***** for **** ***** *** has * **** ***** team ***** ***. ** tells ** **'* **** to *** *** ** Vivint. ** *****'* ***** good *** *** *******. He **** ******* **** deal ****** ** ***.

Undisclosed Integrator #5

In reply to Undisclosed Integrator #4 | 12/26/19 07:58pm

**** **** ** **** come ****.

****** *** ***** **** a *** ** *** resi *********-- *** ********* based ** *** ******** to *** ***** **** to ******* ******* ******. When *** ***** **** evaporates *** ********* ******* up *** ***** ********.

****** *** *** *** less ******** ********* *** more ** ******** **** plays. *** **** ******** for **** ****** **** been **** ****** **** to ******** **** ** start ******* *** ***** rather **** **********.

Undisclosed #6

12/27/19 10:25pm

**** **** **** *** ESA **** ** *** this?

*** ***** **** **** preached *** **** *********-********* ferocity ********.

John Honovich

IPVM | 01/17/20 11:34pm

****** *** ************ ****** ** *** complete. *** ***** ****** trading ** *** **** next *******, **** ** interesting ** *** ** it ********** ********* ** decreases ** ********* ****.

John Honovich

IPVM | 01/23/20 03:07am

******: ****** *** *** started ******* *** **'* up ~**% **** ****:

****** ***** *** ****** capitalization ** **** "***.***", * ****** ****'* a *******. ****** **** any ******** **** ****?

J. M.

01/30/20 09:19am

**! **** ****** **** any **** ** ******'* share ***** ******** ** ~50% ** ********* *******? Will ********** *** *********** on **. **** ******!

John Honovich

IPVM | In reply to J. M. | 01/30/20 05:10pm

****** *** *******! * had *** ******* ****, below ** ***** ***** chart:

*** ***** * ***'* understand ** **** ******* these *** *****, ****** is ******* *** ****** cap ** **** **** $3 *******. ****** ***** be ***** **** *** when **** **** ****** the **** *** ********* at $* *******. ****** have *** ***** ** that ***********?

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