Before we all get comfortable settling in for a nice long prosperous run, what are the chances that Novadaq could be swooped up by a larger fish? And if so, what premium could it fetch? I'm thinking the Yahoo/ Tumblr dynamic could easily apply to Novadaq as well.
Three names immediately come to mind. Intuitive Surgery who knows the company and has plenty of excess cash. The medical equipment division of GE and Johnson&Johnson. I thought we were very vulnerable earlier this year when the stock dipped to $8.50. Even more vulnerable now with the potential of endomitrosis, lymph nodes, etc. At current pps we would still warrant a premium of at least 50%. Hope it does not happen.
The value of the company will be $20+ Billion once they develop their markets---Recurring revenue of $2-3 Billion US alone.
A 50% premium would total ~$0.75 Billion. I would vote against a takeover for anything less than $200 a share. The BOD should hold to the same.