Forward Air Hit Its Synergy Target and Still Lost 86% of Its Value
Forward Air delivered the cost synergies it promised. Its shareholders still lost roughly 86% of their value.
In this episode of Deal Alchemist, Xpertegic Partners breaks down Forward Air's $3.246 billion acquisition of Omni Logistics and what it reveals about the difference between capturing synergies and creating value.
The market rendered its verdict in a week. Forward Air announced the deal on August 10, 2023 at 17.9 times Omni's trailing adjusted EBITDA, defending the price by crediting all $125 million of unearned future synergies against it to show 10.6 times. The stock fell from $110…
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