RE:Electronic Transaction Consultants to Deliver and Operate th Wow. Solving the interoperability issues of EZ pass across states is only going to cost them $2M / year. At a 15% profit margin $300k / yr in profit. What a steal.
Is the business slowing this much that there are no better opportunities to deploy scarce talent and resources to?
It just highlights the issue that ETC lacks any pricing power. An agency selects an agency to work with their procurement department to select a subcontractor.
When Align Capital sold this business for a 140% unlevered / 700% levered returns they need way more deals than this just to achieve the 75% EBITDA growth expected in 2022 multiple. They need 30 more of these deals to just meet expectations priced in the stock today.