Ann: November Business Update, page-15

Well the question now is either how far they can push into profitable territory, or alternatively how fast they can grow while not making losses, and whether they can avoid requiring more dilutive funding. I didn't believe they could do it, and thought Sezzle would be a goner earlier this year. Now I hold some.

Still to me it looks like SZL will be acquired by a finance business with substantial operations, that can provide a much lower cost base, and collect some synergies, and fund the business at a far lower cost. I doubt any bigger co would be interested in taking the risk of fixing such a business, if it was unprofitable or in trouble. BNPL does add a new market and adds optionality to marketing strategy.

If you are evaluating this business solely on its current cost base you are missing the bigger picture IMO.

Talking plus or minus 50% numbers, I think SZL is possibly worth about $400m USD to an acquirer ATM, and that they may pay $US200m for it ATM, which should be at least $2 per share after allowing for option holders, RSU's etc. Suitable acquirers might be Wells Fargo, PNC, Capital One, Citizens, or alternatively a competitor to paypal. I'm no expert on their operations or strategies, but I have seen how much costs can be ripped out of a acquired business when you have economies and benefits of scale.