Australia's largest stock trading and investment forum Australia's #1 stock forum

CLG

Click for more information

19.5%

24.5¢ close the loop ltd.

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

First 6 Last

Share
Profile

Follow
Kyriaco

1,689 Posts.

759

17/03/23

13:05

Post #: 66823123
Share

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.

.

Expand

ps do you intend on buying CLG or do you just come on here to dribble because you are bored ?
1 Upvote

0 Great analysis

Reply

Top Stories

RAD

Radiopharm extends radioimmunotherapy trial to 5 more cancer types

PAM

Pan Asia rebranding to 'clear confusion' after bagging $35M for Chile projects

BTH

Bigtincan's Board backs Investcorp offer: Why a NASDAQ listing could be game-changing

SGP

Things finally 'looking different' for up-and-down Hot Stock tip Stockland

3DA

To make modern missiles, you need 3D Printing. And in that gold rush, Amaero is selling shovels

First 6 Last

Add CLG (ASX) to my watchlist

(20min delay)
Last 24.5¢		Change 0.040(19.5%)		Mkt cap ! $130.3M

Open	High	Low	Value	Volume
25.5¢	25.5¢	24.0¢	$995.0K	4.035M

Buyers (Bids)

No.	Vol.	Price($)
3	224738	24.5¢

Sellers (Offers)

Price($)	Vol.	No.
25.0¢	418969	10

View Market Depth

No.	Vol.	Price($)
3	224738	0.245
20	1263857	0.240
7	568732	0.235
9	622347	0.230
1	75000	0.225

Price($)	Vol.	No.
0.250	388969	9
0.255	1309870	12
0.260	656481	14
0.265	468868	8
0.270	418997	12

Last trade - 16.10pm 19/11/2024 (20 minute delay)

CLG (ASX) Chart