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Anonymous Poster

Offer for Mfg. Unit

09/01/2008 7:43 AM

My client has recd offer to buy running profit making medium size indusry mfg engineering equipment.Annual turnover is $25 Million,profit $6.3 Million, Assets $13.6 Million, Market value of share capital $80 Million.Sale price asked by present owners is $90 Millions approx.As I am not finanlcial expert hence I would like to have advise from our friends.

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Guru
Engineering Fields - Electrical Engineering - New Member

Join Date: Sep 2006
Location: El Lago, Texas, USA
Posts: 2639
Good Answers: 65
#1

Re: Offer for Mfg. Unit

09/01/2008 8:43 AM

$6.3M on a $90M investment is 7%. And that's if you pay cash. If you borrow the money, then your profit is less the interest on your loan. Seems like you can do better with less risk with a decent investment portfolio.

But then, I'm just a poor engineer.

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Guru
United Kingdom - Member - Indeterminate Engineering Fields - Control Engineering - New Member

Join Date: Jan 2007
Location: In the bothy, 7 chains down the line from Dodman's Lane level crossing, in the nation formerly known as Great Britain. Kettle's on.
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#2

Re: Offer for Mfg. Unit

09/02/2008 3:25 AM

The chances of 'Stinky Pete' making a counter offer would seem quite slim.

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