Ann: Appendix 4E and 2022 Unaudited Financial Statements, page-7

So I have Diverger on $4.4m cashflow (including capex and non-controlling expense).

Given it is a negative capital cycle business it is perpetually going to earn cash before profit so cashflow is my preferred metric.

If they paid out the cashflow as a dividend with franking credits (instead of spending it on acquisitions) it is a 15% return per $4.4m in cashflow and even at 0% growth that remains 15% perpetually.

15% for business neutral seems a lot more efficient for shareholders than a return of 4% for CAF.

(why are they paying more than double the PE of their own company?)

They also maintain the optionality of being <$50m market cap which is easier to gain multifold returns on than >$100m and keep their debt options for another day.

They should be able to value-add with a captured audience at low cost where they can also reinvest their cashflow into new services and product at low capex and high rate of return.

*Having said all this I know nothing about their industry or CAF.