Thanks saintly96 - once again appreciate your insights.
My list of pros and cons with the Prime Turbines acquisition:
Pros
- Prime business is a good bolt on acquisition to PTB’s exiting business
- Purchase price largely equity funded (balance is interest free vendor loan presumably to be funded from realisation of assets acquired), financial resources available to develop PT.
- PTB advise they have a good relationship with PT’s management
- Diversification of customers, geographies and segments in which customers operate.
Cons
- Timing - couldn’t be worse with economic uncertainty/disruption and travel restrictions meaning that PTB management can spend time in the US getting to grips with PT
- Risk that PTB management not close enough to US ways of doing business and US business culture
- Risk that PT management don’t hang around
- Risk that PTB directors and management don’t have the band width to operate and grow a substantially larger business
I guess time will tell how it plays out, and it’s the beauty of investing in equities - there are significant rewards for picking winners. It would be foolish however to ignore the form guide and track conditions.
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