Never a truer statement :
Avaya didn't file for chapter 11 because of old debt. They f'd up the debt payoff schedule because Apollo needed bankruptcy to accomplish their takeover. And Apollo was able to get their way ONLY because of how much cr-p Avaya was covering up. Apollo blackmailed Avaya in broad daylight
Guess Alix Partners didn't like this post. Too close for comfort.
The all mighty dollar is Apollo's plan -- Any way they can get it.
Apollo set out conspire a take-over without expecting the blow up and fall out of the past year. So Avaya was much messier than anticipated. And more costly than originally thought. So they need to tighten belts immediately. They had to play into positive PR and get passed Engage. Now the REAL new Avaya will be known soon.
The greatest opportunity to drive equity value is to go public. No major player sees value in Avaya and knows too much about the "real" revenue. So it's most likely they will operate with the slimmest of teams, outsource all that's possible (india, Argentina and the mob manuevering in middle east) and try to bring public. Could involve middle east becoming its own independent company.
However, if an offer comes that nets them a good return, expect them to take it. That is highly unlikely in foreseeable future. What is most probable is give CEO freedom to bring in his friends. Give them a window to perform. CEO likely has rock solid contract, signed the week he "pivoted" late Dec 2022 (from the guy who was fighting Apollo to agreeing to Apollo for a $10m bonus bribe). Even if CEO fails he is likely safe because of that deal. Yet CEO wants his 10% ownership payday.
What's the goal for Appollo?
Sell Avaya to a big player?
Spot on.
People will finally "feel" the impact of Private Equity owning Avaya come September.
No more need to "PR" or "Influence" their way to BS Spinning.
PE don't care!
Blackmailable* 🙃🤣😂🤣ðŸ˜
Exactly.
Avaya con caught up to them. Instead of facing the music. Admitting to inflated projections and false placements of Pay2Play stories (CRN, UC/CXtoday #1 of a long list) they handed themselves to Evil Apollo
2 Wrongs NEVER =1 Right
Just thinking out loud here, but I think the answer is not being blackmailable in the first place.
Houston…We have a problem
Last time Avaya showed profit was FQ4 September 2021. 21M Then there was stock buyback so I guess C levels get more money for their stock.