Ann: Klik Acquisition Presentation, page-3

I'm generally not a fan of roll-ups as they are often overpriced, incorrectly funded, don't generate synergies and/or distract management operationally/strategically.

However, the right ones can be a nice winner and I couldn't resist here.

This seems like a good acqua, and potentially transformational like mgt say.

Quality business with decent margins (better than FOS) and strategic value.

They're paying 2x EBITDA or 4x NPAT. That's pretty cheap price fellas.

Then throw in the sweetener of "Significant synergies with FOS sales & manufacturing business".

Funding from debt makes sense given conservative B/S and undervalued SP (don't wanna dilute at the lows).

On top of this, strategic advantage too given their existing presence exporting to USA, Middle East, Asia, Europe, with "Significant presence in US market".

Makes them an international player.

Currently FOS priced at just 6.7x trailing norm EPS, so it could easily command a multiple in 10-12x range, so decent upside potential from here (and this is ex growth & synergies too).

(IMO rollups shouldn't be on massive multiples, certainly nothing like a certain accounting firm lol)

Lots of mgt skin in the game so getting that owner-operated mentality.

P.S. Hope mgt present the FY24 clearly as expect some noise in the numbers from the acqua.

P.P.S. Order book is now $10m with $4m from KLIK, suggesting existing order book back to $6m (and cash collections were high per last update).