Is Saxo Bank worth $3 billion?

Is Saxo Bank worth $3 billion explained by professional Forex trading experts the “Is Saxo Bank worth $3 billion” FX trading team.

Is Saxo Bank worth $3 billion?

Specifically, the Borsen article reports that Saxo Bank shareholder General Atlantic (22%) has hired investments banks JP Morgan and SEB Enskilda to sell its stake, alongside (possibly) the 9.9% interest in Saxo Bank held by Portugal’s Espirito Santo Financial Group. (Most of the remaining 67% of Saxo Bank is held by its co-founders Kim Fournais and Lars Seier, and other employees). And, reports Borsen, a deal is close.

While we would not be at all surprised by a transaction whereby new private equity investors buy out the existing outside investors in Saxo Bank – such “flipping” transactions happen all the time, across many different industries – we would be surprised by these suggested terms and valuations. By comparison, FXCM – which did more volume and earned more net profit than Saxo Bank in the second half of 2010 – is currently trading at a market cap of about $825 million, or less than a third of the rumored price for Saxo Bank. And as we point out in our Online Forex Industry Report, M&A valuations in the sector tend to be well below publicly traded multiples.

Is Saxo Bank worth $3 billion Conclusion

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