So... let me explain how the multiple works... 1. You pay two fifths of not much interest over the next 5 years due to covid. 2. You pay a fair multiple on the profitability of the acquired company. (Probably not much more than interest if at all.) 3. You rationalise the back office, increasing EBITDA on the transaction as it was at time of purchase. 4. You merge the offerings to new and existing companies such that you add value to them (which is why you brought the company in the first place) and of course you increase profitable sales revenue from your existing customers in return.
then... .. 350 is not a big stretch. Fes
TNT Price at posting:
32.0¢ Sentiment: Buy Disclosure: Held