fair point but if i recall correctly ABC were paying 10, 11, 12, 13x for centres, and had significant debt.
In this case GEM has acquired a competitor at a slight premium to what it usually pays, which may prevent acquisition multiples to be pushed up in the future.
Sterling was clearly a bigger threat (whilst not significant at this stage) than AFJ is at the moment. I don't even rate AFJ so it looks like Gem pretty much has the acquisition market to itself again.
Not saying the market won't react badly based on exactly your point Peterdoobes, but at the moment gem isn't anywhere close to being in the same situation as ABC.
And if gem then announces acquisitions at 4x EBIT in the future then what happens?
This is not investment advice these are just my thoughts
GEM Price at posting:
$4.76 Sentiment: Hold Disclosure: Held
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