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Concordia Healthcare Corp. T.CXR.R



TSX:CXR.R - Post by User

Post by Longboarderon Jun 03, 2016 8:23am
226 Views
Post# 24930461

PE firms make bets too

PE firms make bets tooFor all those saying that no company would buyout CXR given the negative market sentiment, political circumstances,  VRX problems, Brexit etc. Try to remember the only reason the company is up for sale is because of these circumstances. 

Myself and others on this board look at these external problems and see a bunch of white noise that will not effect CXR in the long term. There are likely bidders that think the same and realize as soon as these issues are resolved CXR will fly and the company will have no need for a buyout. Therfore they know that if they dont bid now and bid fairly they will miss this incredible oppurtunity. 

Just like retail and institutional investors, PE firms make bets on the market. Each does their own DD and comes to their own conclusion. Some will see CXR as being too risky and will not bid while others see an incredible upside and will submit competitive bids. Its not like all the PE firms get in a room together and decide that CXR is too risky. They all have their own appetitie for risk. 


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