Ancestry cash yield over Facebook or trigger leveraged buyout
Beijing on June 9th news, the Internet is in the field of look for acquisitions of Private Equity Investment Firm, American genealogy website Ancestry.com may be an ideal target, because this site can be higher than Facebook generated free cash per share.
earlier this week a sources familiar with the matter said, Ancestry.com is considering the sale price, and has hired senior Silicon Valley banker Frank Quattrone (Frank Quattrone) Qatalyst Partners LLC investment bank’s help to find buyers. Affected by this news, Ancestry.com shares rose 11%. According to data compiled by Bloomberg, compared with the Internet and electronic industry in the 96% companies, Ancestry.com can generate free cash per share to more, to nearly four times higher than the Facebook rate of return of cash.
Ancestry.com’s market value has shrunk by nearly 1/3, the reason is a TV program to publicize its genealogy research is facing the plight of cancellation, led investors to worry about the growth rate will slow down the number of users. Nevertheless, the investment company’s (Piper Jaffray) still pointed out that the $1 billion 100 million company may still can attract a buyer, as analysts expected this year and next year the company’s sales will hit a record high.
Ancestry.com, the current price earnings ratio is less than half of the industry average, so the securities company Valuentum Securities company and as the site of Hodges Capital Management shareholders have pointed out, the leveraged buyout companies may be attracted to the site of the valuation and no liabilities etc..
consultant Broadview Advisors fund manager Aaron Garcia (Aaron Garcia) pointed out: "the free cash flow from the higher rate of return, the Private Equity Investment Firm is likely to become a reasonable acquisition. When there is uncertainty, valuations are under pressure, but I don’t think it’s really important to cancel the show. The company has many ways to keep growing."
NBC TV show
Garcia jointly manages $546 million in the FMI Focus Fund fund, which holds Ancestry.com of the shares. According to data compiled by Bloomberg, the fund’s performance over the past five years is better than the competitors in the past 97% years.
When asked whether
is considering the sale price or whether there is a potential acquirer launches contact, Ancestry.com spokesman Heiser. "