Post by
canyousayiii on May 01, 2021 8:34am
Buyout?
There is some discussion about eventual buyout and "midcap" on the other board and folk equating it to SP. That is not how the real world works. The company discussion about the buyout is giving some indication how big of a core business you need to have to be of interest to bigger companies. I believe even from the past discussion, under $50 million revenues, and you are not on the radar. Closer to $100 million or a client base of around a 1,000 buildings. If interested they will make a pitch based ln their estimation of worth and not necessarily the SP. If the SP is inflated for whatever reason, why would they pay an even greater premium if their economic modeling does not justify it? And KNR is looking at small acquisitions at 0.5-0.6 times revenue for comparison. Not saying that is the metric for KNR value, but just saying that for the core business itself, don't dream of SPs in high double digits let alone three digits. Ain't happening on $50-$100M revenues. BC is the wildcard, but if or when this monitoring becomes the norm, we can expect tons of competition so this year is going to be the key for positioning and R&D will be critical to lowering costs significantly. Think smoke alarms (perhaps whatever industrial and commercial versions are) eventually if they become mandated. Can't imagine government mandating something that is not reasonably affordable by the mandated sectors unless there are significant incentives like large tax rebates and such.
Comment by
pointer on May 01, 2021 9:49am
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Comment by
canyousayiii on May 01, 2021 11:19am
OT: SH first and foremost is a business. Two folk can go back and forth picking on each other a 100 times and have a dozen or two readers and that's the number of clicks that help SH as a business. There are some abuse categories but the standards are pretty low. Sometimes you luck into meeting some decent knowledgeable folk and you take it to another platform.
Comment by
pointer on May 01, 2021 11:27am
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pointer on May 01, 2021 11:44am
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pointer on May 01, 2021 11:52am
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pointer on May 01, 2021 1:51pm
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pointer on May 01, 2021 12:06pm
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pointer on May 01, 2021 9:47am
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