RE:RE:The acquisition - thoughts?
Now that there are concrete numbers, if I play with the valuations (taking some of your numbers from earlier)
Say 4x1.5 + 3.4 = 9.4 EBITDA run rate as a very conservative estimate
Put a very conservative multiple of 10*9.4 = $94 million
Debt = $11.2 million (existing) + $14.5 million (new, assuming full earnout) = $25.7 million
Cash = $4.4 million
Then marketcap = ($94 - $25.7 + $4.4) = $72.7 million
Total share outstanding - call it 55 million
If I have not made a mistake, this gives me share price = $72.7/55 = $1.32
Put a higher multiple of 12x (or even 14.8x being the average), and/or increase in existing EBITDA, and the share price I get approaches 3x the current valuation.