Company Valuations Are Low But Takeovers Are Not Cheap

Company valuation multiples may well be relatively cheap at present, but this does not necessarily mean that bidders are getting their targets at a cheaper price. In fact, it appears to be quite the opposite. The majority of shareholders will no doubt see the low price of their stock as something of an anomaly, and as a consequence will be looking for a significant premium from potential bidders to mitigate this.

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