In this engaging discussion, Luke Larratt and Ben Richards from Seneca dive into the potential takeover of RPM Global, highlighting why strategic buyers like Caterpillar might offer higher bids than private equity. They analyze how to spot real investment edges, including management alignment and index inclusion. The hosts also dissect the hype around defense stocks like DroneShield and Elsight versus their actual fundamentals. Listener inquiries on companies like Smart Parking and Objective Corp provide additional insights into smart investment strategies.
44:14
forum Ask episode
web_stories AI Snips
view_agenda Chapters
auto_awesome Transcript
info_circle Episode notes
insights INSIGHT
Strategic Buyers Pay For Fit
Strategic buyers can pay much higher prices than private equity for software businesses due to strategic fit and scale benefits.
RPM Global attracted interest from Caterpillar and others because its software plugs into large OEMs and yields strategic value.
question_answer ANECDOTE
Seneca's RPM Global Win
Seneca bought RPM Global in October 2023 at about $1.45–$1.50 and saw it triple within months.
Their thesis anticipated a spin-off, index inclusion and strategic buyer interest that drove the outcome.
volunteer_activism ADVICE
Skip Low-Return Merger Arbitrage
Avoid chasing merger arbitrage for small single-digit gains unless you run a dedicated arbitrage strategy.
Prioritise higher-return, research-driven investments over low-margin takeover punts.
Get the Snipd Podcast app to discover more snips from this episode
In this Australian Investors Podcast episode, your host Owen Rask is joined by Ben Richards and Luke Larratt (Seneca) to discuss:
– RPM Global’s proposed sale and why strategic buyers like Caterpillar can pay more than private equity
– How to spot real edge (analyst coverage, management alignment, index inclusion, data rooms)
– Defence‑stock hype: DroneShield and Elsight vs business fundamentals
– Listener Q&A on Smart Parking, Chrysos and Objective Corp
If you love learning about ASX investing and takeovers, subscribe to the Australian Investors Podcast on Apple, Spotify, or YouTube! Follow us on Instagram and TikTok for more investing insights.
~~Topics Covered~~
– RPM Global (ASX:RUL): thesis to (likely) takeover, valuation vs strategic value, and what we learned – Why low broker coverage and founder/insider alignment can be real signals – Defence thematics vs businesses: DroneShield (ASX:DRO) & Elsight (ASX: ELS) – Merger arb: when 5–10% isn’t worth it (and when it might be) – Quick takes: Smart Parking (ASX:SPZ), Chrysos (ASX:C79) and Objective Corp (ASX:OCL) – Emerging markets exposure via Seneca Global Equity SMA – Final thoughts: process over punts, portfolio construction, patience
📲 Follow us on social media
– Instagram: @rask.invest
– TikTok: @rask.invest
DISCLAIMER
This podcast contains general financial information only. That means the information does not take into account your objectives, financial situation, or needs. You should consider if the information is appropriate for your situation before acting on it.
If you’re unsure, consult a licensed financial planner. The Rask Group is NOT a qualified tax accountant, financial adviser, or tax professional. You can access The Rask Group’s Financial Services Guide (FSG) here.
Australian Investors Podcast