Ann: March Q3 FY2024 Quarterly Activities Report, page-3

I think everyone is holding out for the strategic review. Just a scenario , let’s assume it will be sold around June:
- bidders will be assuming at least $8.8m in recurring revenue
- for a buyer this will be around breakeven without the external ASX reporting, board costs and general synergies.
- revenue multiples for SAAs businesses are still holding up pretty well, at least 4x seems very realistic for a business with K2flys growth rate (I have included a reference below but many others suggest that 4-5x is a pretty reasonable starting point)
- a 4x multiple would put valuation at about 20 cents without any near term growth (I’m sure bidders would have access to sales pipeline under a confidentiality agreement)

That’s a pretty decent near term outcome for 3 month hold.

The key question is: is there buying competition? as that would increase certainty and price. I’m sure that’s what K2Fs joint financial advisors are trying to drum up.

Looking forward to the next update on the review.



https://www.saas-capital.com/blog-posts/private-saas-company-valuations-multiples/