Research Notes: RBA After IAA

Ritchie Bros. spent $7 billion acquiring IAA. But the acquisition raises plenty of questions for shareholders.

⚡ Highlights:

• RBA’s bid to acquire IAA in November met initial resistance — but in the end the deal was closed.

• But the post-merger RBA looks risky. The company levered up to make what looks like a financial rather than a strategic transaction.

• There isn’t quite enough to turn bearish. But a short RBA trade should at least go on the watchlist.

In November o…