re: Ann: Acquisitions and Equity Raising Pres...
Acquisition multiple is 5.0x CY13 EBITDA (pre-synergy basis) - I guess this is cheap?
The announced acquisitions and the Placement are expected to be EPS neutral in CY13 on a pre-synergy basis - I guess a potential investor has to focus on future (instead of 2013)?
The client base lists look attractive. The type of acquiring businesses are in line with STW's business strategy.
WPP not participating, Debt level (@1.88 - close to upper range @ 2 times) and the structure of earnouts (avg 4 years) are things I have some concerns with.
Macquaire does have such record with under-writing - hopefully they get it right this time too.
SGN Price at posting:
$1.05 Sentiment: LT Buy Disclosure: Held
