RE:smallcapdiscoveries.com Thanks for the video.
A few key notes:
- Steve is looking to sell his company over the next 24 months as a strategic option
- the acquisition in the US (Simpliconnect) was a success and is generating 60% ebitda margins!
- one third of the revenue is in the US and two-thirds is in Canada
- Steve says it is better to grow the business through acquisition than organically ( I agree with him)
- attrition rate is 10% but it can get back to pre-covid levels under 5%
- projecting 25% ebitda margins on about $7m in revenue which works out to $1.75m. He wants to push that to $10m in revenue and $ 2-3 million in ebitda which would make his company even more attractive from an acquisition target.
- the float for the company is about 30% which means the stock can move up or down very quickly. It is tightly held by a handful of individuals. Steve owns about 10% of the company.
A great summary put out by Steve and he's a very likeable guy. I'm usually very critical of CEO's but I think he's a very honest individual and wants the best outcome for shareholders.