I haven't dove too deeply in to that, but Stewart's EBITDA margins were in the low 20s at the time (Versus SCI in the mid to high 20s). Today, CSV's EBITDA margins are ~30%, which I think is slightly above SCI's. So I'm not sure you have the same operaitonal synergies
That said- synergies in that deal were just over 10% of target sales. If you had a similar amount for CSV, you'd be looking at ~$40m in synergies, so all in CSV would do ~$150m in EBITDA. At today's prices, you'd be paying ~8x synergized EBTIDA.... roughly in line with historical multiples (including the Stewart deal).
Maybe CSV is worth paying up for; they are very good assets. But I think the underwriting is starting to get aggressive.
Jul 16, 2023
at
2:51 PM
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