i put a post in a while back repeated below where i questioned the valuation:
"I also looked at valuation methodologies....Lonergan Edwards I have marked down in my brain as being a bit ordinary...but perhaps only a few times and it grated with me! But I believe they have set out to get a value lower than the offer, and significantly so....discount rate of 11.5 % in this interest rate environment, including an assumption we want 6 % above an already inflated risk free rate of 3% ...also very very modest assumptions about growth in business . Their ebitda takeover comparisons are floored because they use a takeover by konekt itself, and also quite a few by zenitas healthcare when they were rolling up, and a sector which is even more volatile and was very premature ...often the sellers got equity in the acquirer which also makes a difference.....there is also some very cheap takeovers thrown in which I am not familiar with."
KKT Price at posting:
64.5¢ Sentiment: Hold Disclosure: Held
