Not everyone thinks Home Depot made a bad deal.

Sheldon Liber, for one, thinks that the rejiggered private equity buyout of HD Supply (discussed here yesterday) may work out better for Home Depot.

Although I am sure I am in the minority on this issue, I think The Home Depot negotiated a good deal given the circumstances. It is better for all concerned. The banks have less exposure, the private equity buyers have less risk and a lower purchase price and HD gets to close the deal with some future upside. This may actually work out better than the original deal.

He may have a point . . . though I’m still prone to believe Home Depot would have been better served with the larger initial sum and to have done with it.

Category: Deals

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