mdf commerce Ord Shs MECVF

David Fawcett- Epic Capital

[Possibleidiot01]

I haven't gone back 4 months on Linkedin to read his previous post that he mentions.

David Fawcett, MA, CFADavid Fawcett, MA, CFA • 2nd • 2nd Founder of Epic Capital ManagementFounder of Epic Capital Management

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MDF: Another Canadian Tech Company Stolen – C’est la Vie – On to the Next One

Today, MDF Commerce announced an acquisition offer of $5.80 per share from KKR-managed funds, a 58% premium over the previous day's close. Four months prior, we posted on MDF as a potential acquisition target, citing its very attractive asymmetric risk/reward profile. While the bid falls short of our estimated intrinsic value of approximately $9.00 per share, C’est la Vie. The bid represents a win for the Epic Fund, and further reinforces our investment thesis that Canadian Small to Mid-size Tech companies are significantly undervalued. We’ll take our profits and look to reinvest in the next exciting asymmetric risk/reward opportunity, of which we have plenty.

[Possibleidiot01]

Now I have gone back Sean Bouwers, CFA, MFinSean Bouwers, CFA, MFin • 3rd+ • 3rd+ Associate Portfolio ManagerAssociate Portfolio Manager 4mo • Edited • 4mo • Edited •       MDF trades at 1.5x revs. Take outs in e-procurement are happening at 4x+. Growing positive EBITDA and no balance sheet risks - we believe this