M2 Customer Contracts, which i believe is now called SAC, carrying value
30 June 2013 = $75.5m (M2 report)
30 June 2014 = $51.1m (M2 report)
30 June 2015 = $68.4m (M2 report)
Then in the Merger documents there is this;
"increase in the fair value of customer contracts by $180,194,000 to $248,635,000"
So when M2 was operating under its own steam Customer Contracts look pretty reasonable, but during the merger process it increased by $180m, to reflect 'fair value'.
In theory that extra $180m represents a recognition of extra sunk cash costs, but in practice looking like a change in accounting policy to achieve a one off tax benefit. (which i dont know enough about to consider)
So if there was "cooking the book's", i dont think its fair to put it all on M2, its that one off merger event that involved M2 and Vocus that lead to the high SAC.
VOC Price at posting:
$2.35 Sentiment: Buy Disclosure: Held