MapisM
Well-Known Member
[ QUOTE ]
It depends on the price...
[/ QUOTE ]In principle yes, of course.
But there's another very important thing to consider.
Paying a price to purchase a Company, so far, meant forking out just a minor fraction of it.
The rest was paid, as you nicely put it previously, by yourself, Deleted User, and the rest of us (including even the employees of the target Company - funny, innit?).
But as it happens, such trick is now suffering serious health problems, to the point that it might not survive in the near future.
Now, back to our initial scenario: you have say 40M€ burning a hole in your pocket, and you're offered those companies worth (on paper) 65M€ at 50% discount. Sounds great, the price is a huge bargain, and you can afford that. Sure, you must fork out 37.5M€, 'cause the a.m. trick doesn't seem to work anymore for some reason, but hey, you'd still have 2.5M€ cash and a couple of companies supposed to be worth 65M€.
So, given a choice between 40M cash and 2.5M plus those companies, WNS?
Sure, it also depends on what there is behind that 65M total consideration, and so forth.
But generally speaking, 'fiuaskme, that's a no brainer these days.
So, I for one am an example where the price alone wouldn't work.
Otoh, in the good old days when I could have paid those Companies the full 65M price forking out less than 10M, I might have reached different conclusions... /forums/images/graemlins/ooo.gif
It depends on the price...
[/ QUOTE ]In principle yes, of course.
But there's another very important thing to consider.
Paying a price to purchase a Company, so far, meant forking out just a minor fraction of it.
The rest was paid, as you nicely put it previously, by yourself, Deleted User, and the rest of us (including even the employees of the target Company - funny, innit?).
But as it happens, such trick is now suffering serious health problems, to the point that it might not survive in the near future.
Now, back to our initial scenario: you have say 40M€ burning a hole in your pocket, and you're offered those companies worth (on paper) 65M€ at 50% discount. Sounds great, the price is a huge bargain, and you can afford that. Sure, you must fork out 37.5M€, 'cause the a.m. trick doesn't seem to work anymore for some reason, but hey, you'd still have 2.5M€ cash and a couple of companies supposed to be worth 65M€.
So, given a choice between 40M cash and 2.5M plus those companies, WNS?
Sure, it also depends on what there is behind that 65M total consideration, and so forth.
But generally speaking, 'fiuaskme, that's a no brainer these days.
So, I for one am an example where the price alone wouldn't work.
Otoh, in the good old days when I could have paid those Companies the full 65M price forking out less than 10M, I might have reached different conclusions... /forums/images/graemlins/ooo.gif
