The terms of Collectors' purchase would tell us a lot, but unlikely that much will be disclosed publicly given that both the buyer and the target are private companies with private shareholders.
I would think that PSA is really "buying" SGC's loyal customer base. It wouldn't surprise me if PSA saw data in their due diligence that suggests that SGC devotees are unlikely to submit to PSA as a general matter.
As such, if the deal is announced and SGC customers flee en masse to PSA, PSA probably wouldn't care so much. But if they hate PSA and flee to CGC or Beckett, PSA would look like a muppet.
So, I wouldn't be surprised if there are conditions in the deal that link the price that the SGC shareholders ultimately receive to the financial performance of the SGC unit over a certain time period -- maybe 1 year.
If this is the case, I wouldn't be surprised if you saw over-grading at SGC during this 1-year period.
|