Will the Slater & Gordon bid for Quindell Legal Services be £1.1bn?

We know an offer is going to come from Slater and Gordon. What we don’t know is the structure and offer price.

The markets are predicting figures ranging from £0 to £2bn.

Looking at the GECR report dated 29th October 2014, it is possible to come up with a realistic expectation for a  Quindell  Legal Services bid.

For the detail of the GECR report see here.

Currently we also don’t know what is included in any sale. It could be for the whole Professional Services division or for parts (i.e Legal Services, Business Process Services and Health Services).

The following diagram provides a good indication of the value of the three parts  of the Professional Services division.

image

It is easy to understand based on these figures why some in Quindell would believe  any bid under £1.1bn would be considered unacceptable.

It remains to be seen if an offer in the region of £1.1bn will be acceptable to both parties.

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