I invite you guys to review LVT's latest acquisition, which I think BUD could be in similar mold.
They raised $15m, $9m to pay for acquisition (part cash part shares) and balance for WC, acquisition was $48m at 6x ARR (annualised recurring revenue- but note ARR is not the same as annual booked revenue) ($8m) for a business that is slightly EBITDA positive. They also had a good/reasonable cash reserve but high cash burn like BUD so still had to raise more cash (when the market is kinder now). Hopefully BUD does better than this but the 'games' these companies play to 'mask' their true underperformance. To me, these transactions are opportunistic to raise money and you need a story to do (even at a discount). Management doesn't get diluted as much as loyal shareholders because hey they have heaps of performance shares down the line.
BUD Price at posting:
9.5¢ Sentiment: Sell Disclosure: Not Held
