Advanced Medical Solutions gets hit with some big abortive costs
The risks of acquisitions for small caps!
Poor old Advanced Medical Solutions (AIM:AMS) has announced that an acquisition opportunity that had reached an advanced stage of discussions has now terminated.
Unfortunately the costs relating to this aborted transaction are expected to be between £700,000 and £800,000 – wow, it would be nice to know how they reached this level!
The ‘exceptional cost’ my not be so exceptional if they experience another one of these!
It illustrates the risks attached to small caps seeking to grow by acquisition. Thankfully AMS had net funds of over £7. 3m at the year end so they can stomach this…
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