FormerXBC Inc XEBEQ

RE:RE:RE:RE:RE:I have done an in depth and thorough analysis

[ZouZS3]

I think the next 5 years will be fun for Kurk and Prabhu. They are just out there hunting and purchasing all the companies and consolidating the market. They have a huge list and they are talking about 5 acquisitions a year starting 2021. This is massive, they just can't retire now it would not make sense

ZouZS3 wrote:
According to Raymond Jaymes DEC 2019 report. "From our conversations with management, we understand these companies are typically run by individuals who are nearing retirement and are thus motivated to sell. These businesses typically come at transaction multiples between 4-6x adj. EV/EBITDA (or 0.5x revenues) suggesting meaningful accretion relative to the companys 2020 and 2021 multiples of 17.0x and 11.5x respectively. Purchase prices are structured with 70% cash and with the remainder coming in the form of 30% earn out with management incentivized to stay with the company and maximize revenues during the earn out period." From Xebec reports" Acquisition opportunities in the Industrial Products segment driven by the retirement of owners of target companies that fall into the boomer category"