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.
PTB Price at posting:
44.5¢ Sentiment: Hold Disclosure: Not Held
