RMD 1.05% $37.39 resmed inc

@sydneybhai, Thanks for posting the article. Now I am even more...

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  1. 7,936 Posts.
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    @sydneybhai,

    Thanks for posting the article.

    Now I am even more concerned about this deal.

    One of the very first questions I ask myself when a company makes an acquisition is, "Who is the vendor, and what is his/her motivation for selling?"

    Now when the vendor is a government body undertaking a privatisation program, or a distressed vendor who is a forced seller because he desperately needs to raise capital, or a very large corporation for whom the business being sold is immaterial in the larger scheme of things, then I think those circumstances might reduce the chances of paying excessively for the business being acquired.

    But when the vendor is an unbridled, smart, and experienced capitalist who - unlike that government seller, distressed seller or disinterested seller of the previous paragraph - has as one of his core competencies, the maximisation of transactional profit, and the buying and selling of businesses is what he does full time for a living, then I think that the venture capitalist vendor in this case knows what he is doing, and I'd far sooner prefer to not be on the opposing side of a trade with him.

    In my mind, this goes a long way to explaining the 18.8x EV/EBITDA multiple that is being paid by RMD for Brightree.


    I'll shut my gob on this now, for fear of annoying people with my tirade.
 
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Last
$37.39
Change
0.390(1.05%)
Mkt cap ! $22.38B
Open High Low Value Volume
$37.30 $37.39 $37.07 $9.449M 253.3K

Buyers (Bids)

No. Vol. Price($)
1 44 $37.32
 

Sellers (Offers)

Price($) Vol. No.
$37.39 2573 2
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