$ - i think <2/3rds is a good level of gearing to a business on 25% margins.
of a 37 mill buy they raise 13mill at .37, 4mill in vendor shares, leaving 20 mill in debt funding plus costs and current gearing gives say 30 mill at 8% is 2.4mill on a 7mill ebit so around 3 times cover.
austock cover this (as they placed the 13mill too) will be interesting to see their figures.
