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.
