own_qualityI defer to you as the subject-matter expert. . . ....

own_quality

I defer to you as the subject-matter expert. . . . but your approach of using a very low discount rate and then paying a premium of this 40% to this valuation to arrive at an M&A price makes no real sense to me.

I have certainly seen situations where a rational corporate will value a bolt-n acquisition target using a low corporate WACC (although - even then, it is a rare corporate that has a WACC of less than 9%), but will then recognise that to be value-creating they have to pay a DISCOUNT to this figure.

Cheers

GD