RE:RE:Back to the doldrums A lot of it is going to be contingent on the structure of the acquisition, where we should get extra insights in Q2 reports. We have taken on 5.1 million debt, so there is higher risk now (but higher reward), as we are leveraged up.
By my calculation, the 3.3 mil term acquisition should result in about 55-60k payments per month if you assume 6-8% interest and 6 year amortization. That is 175k/quarter in extra interest costs, not including the revolving loan facility. Then we will need to make yearly earn-out payments, but I am pretty sure that will only be 500k next year if their DMS rev targets are accurate.
Interesting times ahead. I am liking the CEO switch, from what I have heard from our new CEO on the acquisition conference call and AGM.