We would need an opinion from a merchant banker as to what...

We would need an opinion from a merchant banker as to what current factors are acceptable in this market. I should think that 5-10X earnings at present would fly. In a very small sector such as the Australian VOIP market a premium is likely to be paid to allow a small fish in a medium pond become a white pointer.

MNF has consistently lowered their marketing spend yet their customer base continues to grow. They typically spend $400K PA on marketing, they have actually dropped this by 50% in FY09 and continue to add new customers!

ENG has spent $3M PA on marketing in recent years and has been going for 8 years and now has less customers than MNF. My observation of marketing in this sector is that targeted marketing to willing users seems to be the answer irrespective of cost.

Yes MNF is simply a retailer an uncomplicated business with no fancy overheads. Very posrtable and easy to ingetrate into another VSP with minimal fuss I should think. They have made themselves very attractive for takeover due to this config.

Symbio is just a backend supplier of VOIP & Pipe to MNF. Given time and if neccessary I am certain MNF would find another company to provide this service. MNF is not reliant on Symbio for it's continued existence.

If you want to know if VOIP companies have a future just look at the huge amount of traditional & mobile telcos that exist in our market and who seem to do pretty well for themselves. VOIP Telco companies are just more of the same.

They are not threatened by traditional & mobile telcos as that sector will continue to do all it can to keep phone charges high thereby creating the very reason and justification for the existance of VOIP Telcos to be a lower cost alternative.