What does an M&A target look like today

James Marlay

Livewire Markets

What does an M&A target look like today? The Paradice Global Equities Fund has had 10 stock buy-outs in the past 3 years. Kevin Beck and Paul Mason co-manage the Fund and say it reflects the cheap prices they are paying, particularly in Emerging Markets where recent- indiscriminate selling by ETF's has exposed value. Beck says The Fund looks to buy debt free companies for 6-8 times operating profit. These prices have subsequently attracted buy-outs from PE firms and strategic corporate buyers. Mason says, we are playing in that $1billion - $2billion market cap sweet spot, where companies are either dominating a small industry or they are starting to take share off the big guys. With interest rates at current levels it is cheaper for companies to buy than to build. We all know US corporates are cashed up and they'll continue to be buying smaller companies. (VIEW LINK)


James Marlay
Co Founder
Livewire Markets

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