Ann: Isentia H1 FY19 Results and Strategy Presentation, page-56

This company still does not get it. They are a SAAS company not a media company. Competitors have caught up on content so you now differentiate on innovation. The chairman proudly boasts in the report that they are shifting their investment from "bespoke solutions" to "integrations". I can't imagine a software company in the world that happily admits it is slashing their spend on their intellectual property. In my opinion, they have even left it too late to sell now. I don't know what you're buying. A ready-made (underperforming) salesforce and some marginal customer loyalty, which is off-set by the pain you'd have to go through, integrating a big, fat heavy company, shifting those customers to a new platform. replacing the management, etc. The next 12 months is going to be particularly challenging because all of their federal revenue becomes at-risk and there are large whole-of-state-government tenders to go to market. If you were a company like Cision buying 12 months ago, you'd have had 12 months to get that sheet organised with your core federal business protected. That's not the case anymore. They could easily lose another 10 to 20 per cent of their Australian business in the next financial year, and given you won't have any election bumps either I cannot see them stabilising revenue. At that point, their ability to service their debt is highly questionable. This is why the market values the company so lowly. It's future outlook is dismal.