Margin of Safety
Latest Posts
Category: M&A
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… but an E&Y study I wrote about yesterday claims they are creating value — with returns higher than the public markets — with some new “levers.” I’m not so sure. The businesses they have acquired are earning higher valuations on exit because the stock of their public-company peers is doing well. “Multiples, which compressed significantly during…
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As I wrote on CFO.com last week, LBO dealmakers have access to cheap debt. New proof of that came out today. According to Reuters, KKR got the cheapest borrowing rates ever for a leveraged buyout. For the acquisition of Gardner Denver KKR is borrowing $2.4 billion in loans and $575 million in bonds. The blended…
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The Seeking Wisdom blog on WordPress had a great post about the concept of margin of safety. Read it here. Among other points, he provides an excerpt of a 1984 speech on buying companies, by none other than Warren Buffett (boldface is Vembunarayanan’s). You also have to have the knowledge to enable you to make a…
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The Goldman Sachs study on Too Big Too Fail, an S&P note on rising leveraged buyout valuations, and a data screen on the top companies with rising debt levels relative to EBITDA. Enjoy.
Margin of Safety 