The Wizards at Unparalleled Parking Blog have done it again. Now they have done an financial analysis on the Ohio State PPP deal which I reported here last month. With their financial background, there are graphs and charts with a detail that should satisfy the most critical reader.
In the end, after balancing all of the issues presented and money trading hands, we think the deal came out right about where it should. If the market treats OSU kindly, they will come out on top. If we face rough head winds in the next few years, OSU will be wishing they held onto those steady revenues. LAZ created a high hurdle for themselves, but we think they are privy to some knowledge that we are not. Starting revenue 10% higher by adjusting rate structures and lowering costs and capex by 10% can significantly improve their situation. If they can accomplish these tasks, the deal would end up great for LAZ as well.
Check back with us in 50 years for the final analysis.