Big Lots at Half-Price Signals 50% Increase: Real M&A

For buyout firms looking for a deal, Big Lots Inc. is now offering the biggest bargain among discount retailers in America.

Big Lots, which sells discontinued and overstocked brand name goods, trades at 13.9 times its so-called free cash flow, according to data compiled by Bloomberg. That’s the cheapest among its closest rivals and half the industry median. As private equity firms circle 99 Cents Only Stores and Family Dollar Stores Inc., a buyer could pay a 50 percent premium for Big Lots and still get the Columbus, Ohio-based retailer at a lower price than any of its competitors, the data show.