How do you interpret safety services — business combination deferred consideration?

High levels of deferred consideration suggest the company is using earn-outs to mitigate acquisition risk and align seller incentives.

APi Group APG Safety Services — Business Combination Deferred Consideration

Discontinued — last reported Q4 '20

Similar metrics at other companies

APTVAdvanced Safety and User Experience — Deferred compensation related to acquisitions

$2M-81.0%

BROServices — Business Combination Contingent Consideration Arrangements Range Of Outcomes Value High

$2.5M-86.1%

BROServices — Business Acquisition Cost Of Acquired Entity Other Payable

$100K—

BROServices — Business Combination Consideration Transferred Liabilities Incurred

$100K—

BROServices — Business Combination Increase Decrease Liabilities Arising From Contingencies Amount Recognized

$1.68M—

IRIndustrial Technologies and Services — Deferred consideration

$5.1M—

Other financials

Income statement

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Revenue$2.0B+15.3%

Gross profit$620.0M+14.4%

Operating income$103.0M+22.6%

Net income$57.0M+62.9%

EPS (diluted)$0.12+71.4%

Balance sheet

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Cash & equivalents$645.0M+39.9%

Total debt$2.8B+0.2%

Total equity$3.5B+16.9%

Total assets$9.0B+10.7%

Cash flow

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Operating cash flow$85.0M+37.1%

CapEx$18.0M+50.0%

Free cash flow$67.0M+34.0%

Valuation

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Market cap$18.43B+76.1%

Enterprise value$20.54B+60.4%

P/E56.9×+13.3×

P/S2.3×+0.8×

Profitability

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Gross margin31.4%+0.2pp

Operating margin7%+0.5pp

Net margin4%+0.6pp

FCF margin8.3%-0.1pp

Returns & leverage

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Return on equity10%+0.9pp

Debt / equity0.8×-0.1×

Current ratio1.4×0.0×

Where this comes from

Reported directly by APi Group in its filing.

Tagged under the XBRL concept apg:BusinessCombinationDeferredConsideration.

The official record: APi Group’s 10-Q, filed May 12, 2021, on SEC EDGAR. View the filing →

Questions, answered.

What does safety services — business combination deferred consideration mean?: Future payments owed to sellers of acquired businesses, often based on how well those businesses perform after the sale.
How do you interpret safety services — business combination deferred consideration?: High levels of deferred consideration suggest the company is using earn-outs to mitigate acquisition risk and align seller incentives.
How does safety services — business combination deferred consideration compare across companies?: Common in private-to-public acquisition structures to bridge valuation gaps between buyers and sellers.