WOW. You're all so smart and such great analysts that you're here on the CP message board pontificating.
I'm sure a big financial firm is looking to hire you soon.
actually I'm retired so I'm not looking for work but I worked at a firm in M&A before my time at B&L. not everyone on cafe pharma is a drug rep. shows how limited your scope of view is, so try and smarten up. executives including ceos look at cafepharma when they are alerted at things that are posted. not just B&L, but the big companies too. They hate cafe pharma.
lawyers for companies go through the posts. insider trading, HR issues. it's a problem these companies have to face, especially the insider trading issue. and yes they also have drones inside HQ posting replies. Lawyers actually. posting anti spin and emailing cafe to have other posts removed.
But I digress. You don't need a retired CFO to tell you B&L is not worth 10 Billion. you just got that message loud and clear from the guys with with $. So try and absorb some knowledge about the place you work.
Phone Call: " Hey warburg is trying to sell B&L for 10 Billion".. "posts on cafe pharma are funny, check it out".
ME: "yeah ok I'll check it out and post something".
The revenue is decent, the overhead is bloated, the earnings are suspect, the future earnings are worrisome and that's why it's not worth 10 Billion. If it was worth 10 billion or anywhere near that number you would have been sold. The future earnings are probably still worth exactly what warburg paid for it. I know B&L has acquired a bunch of products and companies but I don't think they have added that much to the overall earnings. I could be wrong on that but I think it mostly replaced other lost earnings.
The reason you don't have a deal is because the 2 sides are too far apart. warburg wants 10. Whoever went through the deal probably didn't even come back with a close number. How do I know? Because you're still there.
Do the simple math. figure nothing changed and they still earn at least 300 mil a year like they did in 2007 on a 5 billion sale. They've had it for 5 years. earned 1.5 billion. It's not knocking it out of the park but it's a 6% annual yield.
Now figure they had some growth and better earnings and maybe it's worth 6 bil. Just not double what they paid. They're dreaming. On the low side it's worth 5 on the ultra high side let's say 7 and that's crazy. better deals to be found for sure. And that's why you don't have a deal. It's a sellers market right now. companies are dying for revenue and acquisitions, orphan drugs, 100 million dollar cancer niches they're grabbing whatever they can find. They have massive amounts of cash on hand that they've been hoarding.
B&L has a 2 to 3 billion dollar revenue stream and no body is buying it? Tells me the earnings are too light for the value warburg has placed on it.
I liked B&L for part of the time I was there. Most all those people are long gone. I probably only know a couple people left there. Just a shame to see the direction it went.
I see B&L split up in pieces in the future and that's a shame for 150 year old company.
Don't just job hop just to have a job.
Plan your career carefully. If I were working I'd be looking for a strong transition away from there.