pay attention to sb2000 tox is flying toot, page-16

some good comments, terrier and jimmy c,

my understanding is that in an acquisition goodwill is calculated by basically subtracting net assets from the cost of the deal. The extra you pay beyond the assets you are acquiring is Goodwill. In this case consideration is $25 mill (by debt) and taking on $20 mill in net assets. Therefore Goodwill component of the acquisition is $5 mill which is approximately 20% of the cost of the deal. I readily concede I know nothing of industry standards but it seems a lot for a capital intensive, low margin business??? I dont know??? what do other people think.

The foothold arguement in this eastern states seems compelling.

Either way the share price will soon tell us what the market things of the deal

DYOR