Hi All. Saw this article in the Times Business Section this morning , a couple of private equity companies are weighing up a takeover bid for them.
Do we think this would be a potentially good move for companies like Freetrade , in valuation terms ?
Hargreaves Lansdown targeted by private equity
the valuation multiples of HL are going to improve so also the potential valuation of Freetrade.
However, consider that HL is mainly valued on the EBITDA (the company trades @ around 13.0x EBITDA), while FT is selling itself as a growth company, so a multiple on revenues is mostly appropriate at the moment.