In the on-line information sector, selling for stock to an undervalued company can often make a deal worth doing, even for a low multiple. Ken Marlin, the founder of M&A boutique Marlin & Associates, advised Inlumen Inc. to sell to ScreamingMedia Inc. on Oct. 29 for $2.6 million in stock or cash, or 0.6 times Inlumen’s trailing revenue run rate. But even though the equity of firms in this sector usually trades around 0.8 times to one times revenue, Marlin said taking stock can provide certain advantages.
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