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Tax prep glassesLiberty Tax Service has received a $12-per-share recapitalization offer from Vintage Capital Management, which already controls the tax services company. Vintage also indicated that it could quickly add other "operating assets" to Liberty’s business, along with the debt-and-equity offer.

“We believe Liberty may be better served as a platform for the acquisition of other operating assets” and noted one or more assets could be contributed as a part of the transaction. He also promoted the proposed deal as potentially helping franchisees,” Brian Kahn, managing member, wrote on May 2, in a document filed with the SEC.

Vintage purchased controlling interest in Liberty from founder and former CEO John Hewitt through its affiliate,  Vintage Tributum, last year, and replaced the board of directors. SEC documents show it owns 14.8 percent of outstanding shares. The latest offer is for any or all of shares, not for all outstanding shares.

Kahn’s letter pictured the deal as one that can help franchisees. “Leveraging our resources to stabilize the franchise system with a more attractive value proposition will put franchisees on stable financial footing and create an offering sufficient to attract new franchisees as well,” Kahn wrote.

This follows a takeover offer of $13-per-share that Liberty received from an undisclosed private equity fund in November. That bid was withdrawn, Liberty also had discussions with what it called several interested party, none of the offers were acceptable.

 Liberty named a special committee to evaluate the Vintage offer.

Bob Scott
Bob Scott has provided information to the tax and accounting community since 1991, first as technology editor of Accounting Today, and from 1997 through 2009 as editor of its sister publication, Accounting Technology. He is known throughout the industry for his depth of knowledge and for his high journalistic standards.  Scott has made frequent appearances as a speaker, moderator and panelist and events serving tax and accounting professionals. He  has a strong background in computer journalism as an editor with two former trade publications, Computer+Software News and MIS Week and spent several years with weekly and daily newspapers in Morris County New Jersey prior to that.  A graduate of Indiana University with a degree in journalism, Bob is a native of Madison, Ind
Last modified on Tuesday, 14 May 2019
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