GBG have announced a £73m purchase of the private PCA company. Can someone please explain why GBG would want to buy a turnover of £12m and profit of £2m for £73m.
I looked at this acquisition this morning and came to similar conclusions that they are paying top money. I don't have the figures with me ( soaking up the sun in my back garden) but on both EV/ebitda and multiple of net profit, it was expensive. I think they are relying a lot on synergies to justify the high price. Not comfortable with this as it jacks up the execution risk.
