Q: I often hear of companies being bought out. My question is on ZDC. Being a rapidly growing company, who could possibly buy them out if so? and what would a buy out mean to shareholders, and what would profits look like considering past history of companies being acquired? Thank you
5i Research Answer:
WHile purely speculating here, we think a company like ZDC could fit in with rental companies like URI or HRI. Otherwise, general industrial capital equipment companies could be suitors that have overlapping customer bases. On what any buyout would look like, it is really hard to predict or comment but given the growth rate and the position for the company, we think it is fair to assume any takeover would be at a premium to the prices at the time.