In late April, Privet made an offer to take Synalloy (SYNL; disclosure: long) private at $20/share. Synalloy quickly rejected the offer, and with SYNL's shares currently trading for ~$18.45/share, the market clearly doubts the odds of Privet successfully taking Synalloy private are good. I disagree with the market; I think there's a very good chance (>50%) Privet's offer is the first step to SYNL going private at a price significantly above both today's share price and Privet's initial bid. In addition, even without a take private, I think SYNL is likely undervalued and would see its share price appreciate as the year goes on and the results of their recent acquisitions (and some possible end market strength!) fully shine through their income statement. I'm going to start this post off with an overview of Synalloy and a quick valuation of Synalloy. I think that stuff is all pretty vanilla; after that, I'm going to move into Privet's offer and Privet's history of making offers for companies. I think that's the most interesting piece of this thesis and where the real "edge" comes in here, so I'd encourage you to push through to that part. Some background on Synalloy. The company has a long history, dating back to 1945. Today, the company operates in two segments: Metals and Specialty Chemicals. Metals is, by far, the more important segment, with revenue >4x and EBITDA >6x chemical's financials.