Thread regarding Dun & Bradstreet (D&B) layoffs

DNB Stock: How Private Equity Created Billions Out Of Thin Air

https://investorplace.com/2020/07/dun-bradstreet-how-private-equity-created-billions-out-of-thin-air/

Interesting quotes:

"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."

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Post ID: @OP+16ghb7b4

4 replies (most recent on top)

This board was s for announcing layoffs. Sounds like someone is getting irritated hearing truths

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Post ID: @gtth+16ghb7b4

S&MS is a strong driver for D&B and justifies the $10B valuation. All the whiners on this board are just the dead weight that D&B has shed and have missed out on this opportunity.

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Post ID: @gpnn+16ghb7b4

Not finished yet. More to come in 4th quarter

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Post ID: @6alk+16ghb7b4

I smell a bankruptcy next year. Cash out your retirement plan

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Post ID: @lgk+16ghb7b4

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