No doubt Lux are paying way over the odds to get control of target companies.
Very hard to fathom the reasoning. Yes economies of scale etc. but still leaving autonomous management and operation of each company in place. No centralisation of ops etc. which might have been an obvious saving.
In the process are issuing bonds right left and centre to raise huge amounts of debt.....thereby burdening not just themselves but everyone they have bought.
An IPO on the cards in less than a year ( floatation) which is unbelievable in the sense that their strategy will not have had a chance to mature and prove its effectiveness.
The guys behind this are money men creaming massive commissions on each aquisition and bond issue doubtless who are looking to put together a package of companies then sell as quickly as they can with the promise of riches to come.
I guess they will be long gone before the effectiveness or otherwise of their strategy is discovered.
with the chill winds blowing in europe this is a strategy involving massive risk to all who work in the target companies. They are the ones who will have to pay the debt that has been raised to buy them....and will do so with their jobs if it goes wrong.
Its one monumental gamble and with each purchase the stakes get higher IMHO.
Time alone will tell.
Last edited by Ghengis Cant; 19th Jan 2015 at 08:24.