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Re: zeynoc post# 34671

Wednesday, 04/27/2016 2:39:20 PM

Wednesday, April 27, 2016 2:39:20 PM

Post# of 47873
Z- everyday the market puts a BID on your public company, you pay 200% more than BID for that company?...thats NOT how its done. This company (ISC) would be a prime candidate for that questionable scenario.

Sure, it can be done that way. And sure you can make a case for paying 200% more but you had better be able to prove that case...

To my mind, everything leaks...and a smart M&A move will let that leak lead the way...this helps diffuse doubt when the deal is PR'd.

Think about ISC...our shareholders want $1B...agents of doubt here have said 2Xs forward revs or about 80M$. I will go out on a limb and deem THAT spread as incredible as neither is likely. Now, you play CEO of the buyer and explain to your shareholders why you paid the middle price, say $500M for ISC. I think a case can be made for $500M but I sure as hell would want to have the story lined up to make my shareholders happy about it. But my story does NOT have to be as compelling if the MARKET had priced the target at $405M before I paid $500M for it.
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