Share
2,143 Posts.
lightbulb Created with Sketch. 105
clock Created with Sketch. 03/02/19
22:10
Share
Originally posted by crazydave1942:
↑
No I'm saying that is highly unlikely but that's how companies win with acquisitions. How it works is we currently have a MC of 100 million for 9.5c that's not what Buddy is worth at the moment, let alone with more dilution. So if we overpay for revenue depending on how many more shares come onto the register it is a loss in the long run. We may have a MC of 200 mill at 9.5c. So to get to 20c we would need to get to 400 mill MC and justify it. If the company we buy isn't producing enough revenue for what we paid the SP will struggle for years.
Expand
I forgot you will also get increased out going operating funds taken on board. So the acquisition needs to cover this and what Buddy is already operating at which is 4.3 mill a quarter. This needs to be a massive friendly deal if you ask me, all IMO.
