RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Wouldn't financing drive the price lower? +dilution & +debt?With projections declining I estimate next year the whole NA segment should make 200M in revenues with margins ranging 85-88%. The international segment about 620M. An investor who is not as concerned with capital structure as they are with EBITDA or operating cash flows I think would be willing to pay 2.5X revenue for this segment and assume the 706M in long term debt from the Covis acquisition. The investor would be getting the whole NA segment portfolio for basically what Concordia paid only Covis for and its highly profitable. That 500M should in turn be used to pay down debt which would reduce total debt by 1.2B
Not all investors see it that way that depreciation and interest matter so greatly.
Some are more interested in annual cash flows and EBITDA then the capital structure itself whether we agree with them or not.