Where did you find Workflow's numbers? Can you post the link? Also, we don't know the terms of the financing. If it's anything close to their credit facility then it is cheap debt.
They have a huge credit facility on top of this merger. It's going to be very hard to drive it that low.
Thanks for sharing the info! I was trying to figure this thing out. What's crazy is how they were able to acquire a company for basically no money down and then get a huge credit facility on top of that.
It doesn't make much sense for the lender, but whatever...
Thanks for sharing the story.
That said...I would continue to look for the P/E in RGR to decline to a level closer to SWHC in the coming months.