Timboo, you are being conservative. If the remainder of the debt...

Timboo, you are being conservative. If the remainder of the debt facility, ~$80m, is successfully deployed at an EBIT acquisition multiple of 5x, implies additional EBIT of $18.5m to AFJ. Add that to AFJ's proforma FY15F EBIT of $28.5m = post debt funded acquisition EBIT of $47m.

AFJ is currently trading at FY15F proforma EBIT multiple of 7.6x. GEM is trading at FY16F (note 2 years out, not the inflated next year multiple) EBIT multiple of +10x.

At 7.5x EBIT, AFJ valued at $350m or $2.10/share.

If we use GEM like metrics, AFJ valued at $470m or $2.80/share.

I think $2.50/share by June 2015 should be your target Timboo!! Obviously there are risks surrounding execution, integration and overpaying ... but plenty of that already discounted in the current share price.