RE:Raymond James expects 30mil equity raise - dilution coming?besttobe wrote: VALUATION We update our models (Ex. 1) in which we conservatively assume a 3% organic growth rate, and no additional M&A through 2023 as QIPT’s management team—whom we’ve come to appreciate as very strong operators (yet another reason for right-sizing of QIPT’s valuation multiple)— ensures the acquisition of Great Elm is neatly and fully integrated. Also, while management indicated that the carrying cost of the $73 mln debt is very manageable given QIPT’s ~2.0 debt/ equity ratio, we conservatively assume a near-term $30 mln equity raise @ $9/sh deriving a proforma FD sh. count of 42.5 mln. As such, we roll forward our valuation of QIPT to a blended 10x 2023E EV/EBITDA and 8x 2024E EV/EBITDA multiple (corrected from previous inaccurate 12x and 10x resp.)
lame bashing. New equity at $9 US for accretive deals is not dilutive.