Subject: Re: Minority ownership of acquisitions
I think the key part of the Pilot deal that screwed us was that without operational control we were powerless to stop the cooking of the books. This pushed us into paying more for the remaining portion because we had agreed in advance on the metrics to be used for valuing the remaining portion. So besides tying % of economic ownership to % of operational control, another point would be to reserve the right to determine the value of the remaining unowned portion at the time it’s purchased.