Re:Lenovo Agrees to Buy IBM Server Business for $2.3 Billion
by mnglkhn2 on Thursday January 23, 2014 @12:17PM
(#7109481)
I should have qualified that number right from the beginning as a back-of-the envelope estimation:
If we assume a 10x multiple to profit and a 5bn revenue, it results in 5.4% margin.
If we just say it was a 8x multiple, then it is 6.75%
It goes to 7.7% margin if we make the multiple to be 7x
If we assume a 10x multiple to profit and a 5bn revenue, it results in 5.4% margin. If we just say it was a 8x multiple, then it is 6.75% It goes to 7.7% margin if we make the multiple to be 7x