Vendor competition ought to knock asking prices back a little. Hey, TWE is right to pursue M&A. Maybe the drought and wildfires in California have tempered price expectations.
Overpaying in M&A is the easiest game in the world - everyone around the table is incentivised to close the deal. And if closing requires the buyer to overpay, the deal will be massaged in that direction. It takes a cool chairman and/or CEO to say no, the price is too high. The financial dealmakers calculate all conceivable synergies, capitalise them into the buy price and assume peerless execution. Good luck with that.
I just hope the TWE dealmaker team has employed someone to whisper 'don't over-pay' in executive ears every ten minutes.
Ash
TWE Price at posting:
$16.36 Sentiment: Hold Disclosure: Held
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