The Riverdeep Deal

The Irish Independent takes a look at the Riverdeep deal and concludes that if all the pieces fall into place Barry O'Callaghan's stake in the business could soar to $2.2bn. Davy, which is the broker for Riverdeep, comments in their offering document that "equity investors could potentially double their investment over the next two years". They go on to explain how this may occur via various an exit strategy options:

While the broker said it is too early to discuss how investors will realise gains, potential exit strategies over the next two to five years include a stock market flotation in America or a trade sale "to a large international publishing company such as Newscorp or Viacom". It said a third option of refinancing the group is the least likely route, given the current state of the debt markets and EMPG's relatively high existing debt.

In the Independent article all so notes the potential for cost and efficiency gains that are assumed in the combination of HM and Riverdeep.