Ann: Strong Growth Support Upgraded Guidance, page-10

They have a debt facility to support acquisitions and working capital too. At 2x EBITDA that’s around $14m in capacity on top of cash - I don’t recall what it’s drawn too atm though. A CR is highly unlikely unless they make a transformative acquisition.

The key part of the announcement for me is not just the profit upgrade but that they’re driving ORGANIC growth across all areas. These trends don’t change like a light switch so having this continue, plus synergies, plus cross sell will be very very positive.

From a valuation point of view, multiples applied tend to increase with scale. In other words as the business grows, not only will profit and valuation grow, but the multiple will too.

It wouldn’t be much of a stretch to value this at 10x EV/EBITDA implying an EV on ~$8m EBITDA of $80m or materially higher than where we are now.

It’s also worth noting that there are options from the last CR sitting with an exercise price a bit higher. Presumably some more market recognition of the business will see some option conversion and more cash coming in.