Thread regarding 3M layoffs

Should another company decide to ink a deal with 3M, they had better conduct the most comprehensive due diligence in American history.

Don’t trust and verify everything.

Word is bankruptcy within a few years, c-suite has made their millions, that is all that matters now.

Monish Patolawala paints a vague and less than honest picture of 3M financials. A third-party should be ordered by the SEC in order to ferret out the shenanigans.

Captain Smith denies having struck the iceberg and Patolawala nods his head like Kensy Cooperrider.

Healthcare revenue was $8.6B in 2021. Assuming modest growth of 3% in the last couple of years, HC revenue this year should be $9.1B. SpinCo IPO guesstimated value of 3-3.5X sales = $27.3 - $31.9B. ParentCo should get roughly $6B from the spin to pay down some of the PFAS settlement. With 3X EBIDTA debt (~$7B), ParentCo debt will reduce from $13B to $6B. Looks like ParentCo will come out OK after then spin.

Here's a breakdown of the key concepts:

Spin-off: A spin-off is a corporate action in which a company separates a portion of its business into a new independent entity. This new entity operates as a standalone company, distinct from its parent company.

Debt: Debt refers to the amount of money that a company owes to external parties, such as lenders or bondholders. It represents the company's obligations to repay borrowed funds.

EBITDA: EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a measure of a company's operating performance and profitability, indicating its earnings from core operations before considering non-operating expenses.

In the context of the statement, "Spinco would be spun off with debt that's 3x EBITDA," it means that when the company Spinco is separated from its parent company, it will assume a debt burden that is three times its EBITDA. This suggests that the spin-off company will have a significant amount of debt relative to its earnings. The specific implications of this depend on various factors such as the total debt amount, the company's ability to service the debt, and the industry and market conditions it operates in.

They really need to re-think the Healtcare Spin Off. In this case, the sum of it's parts would be worth a lot more as assets being separate entities sold alone as parts than lumping together a bunch of divisions. The intellectual property and 3M market share in products and brand identify in Dental alone should be a much higher valuation than the entire Healthcare Spinoff itself. The Seperation and Sciences division with its own systems and factory's should be a standard alone spin off from Healtcare so that medical and water filtration have synergies with a potential acquisition. The Polypore intellectual property and proprietary filtration and market share with advanced factory capabilities is worth a he-l of a lot more than the current Spin of Healthcare as one entity, or company merged with Wound Care and HIS. Heck the Polypore technology and innovation of German colleagues in SPSD is worth more than the whole dang entity together. Health Information systems should be sold seperately also from Wound Care. 3M as a whole is way undervalued, but lumping these different Healtcare and filtration and Wound care, Dental, and HIS assets into one entity is not only d-mb it is terrible value for shareholders and employees alike. Who is advising management and the BOD for this concept should be called on the carpet. Someone is trying to make a potential acquisition company a lot of money from the inside, by way of undervaluing the technology and market capitalization of these divisions and market position. The BOD should be pausing this spin until there is a better understanding of the parts than trying to lump all of these together in one Spinco.

Like virtually every other initiative under current leadership, this one will likely fail as well. Who knows, maybe won't even happen for whatever reason. My guess is that it won't look the same as announced, maybe an acquisition in play since no CEO has been named yet. Not to mention the continuing delays in announcing the new company name.

Is it even happening? Still no CEO.

Monish said in the announcement video that Spinco would be spun off with debt that's 3x EBIDTA (or whatever that fake financial metric is). Called it "very standard".

Is the $7.5B dividend from Spinco to Parenco true? 3M has said that it would retain 19.9% of Spinco. There has been no report of the $7.5B dividend. If true, Spinco would be saddled with a huge liability putting it in a position to fail. How would this serve 3M (who will hold 19.9%) and Spinco?

Roman the flim flam man should get a giant kick in the ar-e out the door for his mismanagement of 3M not a parachute. That and a boot to the head for trying to hand the reigns of 3M company to a degenerate serial offender.