HSHZY - Welbilt To Be Sold For 12x Forward EBITDA Peers Sell At 25x-32x

• Welbilt, Inc. is a spin-off from The Manitowoc. Welbilt appears to be the world's leading foodservice equipment corporation.
• In 2019, the company reported $348 million. I expect the company to recover from the current crisis in 2023. Hence, I would be using forward EBITDA of $348 million.
• I reviewed the valuation of competitors. They trade at 6x-32x EBITDA with an EBITDA margin of 7%-18%. In 2019 and 2020, Welbilt, Inc. reported an EBITDA margin of 20%.
• The valuation of 12x Forward EBITDA that Welbilt accepted looks low. Shareholders should not accept the deal.
• I am not the only analyst claiming that the merger agreement signed by Welbilt, Inc. is not fair for shareholders. As shown in the image below, City analyst Tim Thein reported that the company's current valuation is not too high.

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