RE: Taker Over price17 Jan 2021 11:16
Takeover prices vary with each industry. Usually based on profits and assets but there are future groth considerations too. You wouldn't value the Suez canal with one metre left to dig at zero because its made no profits would you? That's a bit where we are just now. Lots of time and money invested with huge future potential. So what come up with is how much a company will pay for what should be a huge income for many years. This is where the biggest and most efficient pharma company comes into play. They have the distribution network, the sales team the production facilites etc. If SNG can produce a million treatments a month producing £2bn a month in earnings or £24Bn a year then a buyout of £50Bn would seem cheap. Easpecially if big pharma then starts to produce 3 million treatments a month.