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2.7¢ kaddy limited

There's only 2 of the original Wine Depot team left, DT and...

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Exemp01

9 Posts.

3

18/08/22

20:54

Post #: 63199687
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Originally posted by steve10: ↑

Whoever did the DD for Kaddy acquisition & the financials. And also whoever decided to acquire two distressed cash burning businesses when DW8 was already burning cash.

Would have been better to acquire a smaller 3PL making a few million profit to offset DW8 cash burn at the time. And acquire it for a reasonable price of 4-5 times profit. Should not have acquired more cash burn.

Had $1.5M Q4 FY21 cash burn x 4 = $6M pa. If they acquired a smaller 3PL making $3-4M profit x4-5 = $12-20M purchase price it would have reduced cash burn to $2-3M pa or $500-750k per quarter. Or they could have looked for about $6M profit to acquire to break even x4-5 = $24-30M cost.

Got complicated with WDA, Partons, Kaddy & original DW8 team.

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There's only 2 of the original Wine Depot team left, DT and one other. Infer from that what you will.

DW8 Price at posting: 1.0¢ Sentiment: Hold Disclosure: Held
3 Upvote

0 Great analysis

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