ACQ has $255 of Revenue per shareYou would have to think that an Autonation or Lithia Motors or Group 1 would be looking closely at this company with some opportunistic eyes. They could buy $6 Billion of annual revenue that ACQ currently produces, for a lousy $400 million in stock price. Maybe $600 million if they offer a 50% premium to the current price.
As I said in my last post, with ACQ generating $180 million annually in free cash flow they would have all their money back in 3 years and after that they get to keep all that profit. They would also get an easy entry into the Canadian market and would be able to slash a lot of costs out of ACQ by combining many functions with their own.
Why bother acquiring 1 dealership at a time when you are being offered a package like this?