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clock Created with Sketch. 09/05/18
14:47
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Originally posted by neoteric
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After spending some time thinking this transaction through, I've concluded that IMO it is likely a win/win/win scenario.The Winners Advent . This kind of multiple is on the higher end of the spectrum of what PE usually seek when they want to exit a business.Advisers, management consultants and underwriters are all taking a cut from the raising and are well remunerated here.Financiers do well too by extending $1.5b to a client with a strong credit rating and financial / operational track record. Finance institutions stand to earn a reasonable return over an extended period.not go right with an acquisition (pretty likely in my experience) then the EPS accretion can disappear easily, and we are only talking about modest single digit EPS accretion here, there are no synergies (they would be called out if expected).
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Thanks @neoteric , for the very informative post. I have admired REH for years now and have always hoped for a hiccup to present a buying opportunity - it has never happened.
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