So I'm sitting at a coffee shop re-calibrating my stock portfolio when I come across this intriguing company. A small cap stock ($2B market cap) in the business services industry. Been around for 20+ years. Profitable with admittedly okay margins. Not indebted at all, but could possibly use some more working capital. Obviously management is in place and the CEO has been with the company for the past 11 years; he steered the ship in 08' and has been around since. Currently trading at 11x EBITDA.
All these qualities fit the criteria of a regional private equity firm I know by reputation. A few years ago, a larger PE fund invested in an identical business that was smaller and younger. I once heard about a guy that orchestrated a one-off M&A deal in the early 2000's. He ended up netting $8-15MM and retired as soon as the transaction closed. The caveat is that he was a VERY well connected person though.
1) Is it even remotely possible to capitalize on the opportunity for my own benefit? Some kind of a finders fee or an elevated title to join the PE firm as an employee is what I had in mind. Not sure where to start though. How would you approach?
2) Aside from my quick-and-dirty analysis above, what other metrics should I examine to determine viability?
3) What are the odds that PE shops don't already have their eyes on this target? At the very least, I can bulk up on its stock. Needless to say, #1 would be far, far more lucrative though.
Armhoo1, bummer your thread hasn't had a response yet. Maybe one of these threads could point you in the right direction:
I hope those threads give you a bit more insight.
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