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29.0¢ close the loop ltd.

Ann: Close the Loop to acquire ISP Tek Services, page-6

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Kyriaco

1,562 Posts.

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17/03/23

13:05

Post #: 66823123
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Originally posted by madamswer: ↑

So they are paying US$66m for a business that in the 12 months to October 2022 year reported "normalised" NPAT of US$13.7m:

Which obviously looks very cheap.

But then, in the next breath they say there will be a US$5m earnout payment if CY23 EBITDA exceeds $12m:

Which implies NPAT for CY23 which would be a darn sight lower than the $13.7m quoted for the 12m to October 2021. Which would make the acquisition a lot less cheap.

Unless the normalisation adjustments that were made in order to arrive at the US$13.7m number are large, in which case that US$13.7m figure is not very meaningful.

Or alternatively, the US$12m EBITDA target for the earnout is going to be exceeded by far.

In which case that figure is also not very meaningful.

So, a strange way to present things, making it nigh on impossible to work out what sort of valuation multiple they are actually paying for the business being acquired.

.

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ps do you intend on buying CLG or do you just come on here to dribble because you are bored ?
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(20min delay)
Last 29.0¢		Change 0.000(0.00%)		Mkt cap ! $154.2M

Open	High	Low	Value	Volume
29.0¢	29.5¢	28.0¢	$177.3K	621.6K

Buyers (Bids)

No.	Vol.	Price($)
1	370	28.5¢

Sellers (Offers)

Price($)	Vol.	No.
29.0¢	166329	2

View Market Depth

No.	Vol.	Price($)
1	370	0.285
5	201428	0.280
7	149256	0.275
6	51329	0.270
3	45500	0.265

Price($)	Vol.	No.
0.290	166329	2
0.300	21440	2
0.305	17171	1
0.310	35000	2
0.315	315000	1

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