Apogee paid about EUR 62.5M plus up to EUR 10M contingent for a 20-year-old Latvian glass coatings maker. How do you count the earn-out?
Apogee Enterprises completed its acquisition of GroGlass, a 20-year-old Latvian maker of anti-reflective and UV-blocking coated glass and acrylic. The price was approximately 62.5M euros on a cash-free, debt-free basis, plus contingent consideration of up to 10M euros.
So the headline can be read as 62.5M or as up to 72.5M, about 16 percent more if every earn-out target is hit.
I do not have the profit figure, so I cannot give a multiple. But the question is general: when you compare deals, do you use the base price, the base plus the full contingent, or some probability-weighted number? I have seen people do all three and it changes the comp set a lot.
For people who build precedent transaction tables: what is your rule, and what do you do when the earn-out terms are not public?
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