"Additional earn-out payments based on increased recurring software license revenues and earnings above the normalised FY14 run-rate. These earn-outs exclude most synergies and will only decrease the final multiple paid."
To me that reads that no earn outs unless businesses exceed current earnings, and any extra earnings will cost RFL less that the 5.9 multiple they are paying for existing EBITDA. So up to $30m will only get paid out in full if the acquisitions bring in more that $5m of extra EBITDA (at the very least) with the likelihood of it being much more than $5m before the full $30m would be paid.
Or am I reading it wrong?
RFL Price at posting:
56.0¢ Sentiment: LT Buy Disclosure: Held
