RE:RE:RE:Financial recap My understanding of transactions of this nature is that there would be a 'working capital' adjustment to the stated sale price. In the news release they do note that the $23.95M is "subject to certain adjustments" ... fairly broad statement, but I assume the Transaction Agreement will stipulate the specifics.
To me it wouldn't made sense for the WC to not be adjusted, as those receivables are tied to revenue earned while existing shareholders owned the business (not future shareholders). If we assume no such WC adjustment to the $24M Purchase Price, then SSC effectively paid lets call it $14M for the future earnings of Avante Logixx (less than 3x TTM EBITDA).
If that were the case, I find it hard to believe Fairfax wouldn't just settle for the immediate liquidity on redemption of the debentures and redeploy that capital elsewhere