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Message: Purchasing an existing company

Purchasing an existing company

posted on Jan 21, 2008 06:31AM
Everyone is talking about a quick fix toward getting on the big board. This is not in my opinion the wisest route to take. A public  company  on an existing exchange will cost 20 to 40  times its earnings. A private company will cost considerably less, usually between 5 and 8 times earnings depending on a multitude of factors. There are ,of course exceptions to all rules but generally companies that are accretive to earnings are difficult to find for obvious reasons. All IMHO, doc.
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