"So, private equity actually paid a fairly steep price, paying more than 3x sales for a stagnant to slowly shrinking business. On an EPS basis, the private equity firms paid nearly 30x earnings to take it private. Too rich a price, right?"
" Once the initial hype wears off, however, people will see that they’re now paying a $10 billion valuation for something that was worth less than $6 billion last year."
"Of note, for an entire decade, revenue was dead flat. From 2008 on, the company has consistently earned between $1.6 billion and $1.8 billion in annual revenue, which is actually significant shrinkage once you account for inflation."
"Now sure, earnings will be up versus where they were trading prior to the 2019 go-private deal. However, that’s primarily because Dun & Bradstreet’s new owners fired a sixth of their workforce. It’s easy to cut costs that way."