Valuing the Cable Logic Acquisition, page-3

First 3 Last

Share
Profile

Follow
jackarooz

2,393 Posts.

147

20/08/16

12:42

Post #: 18564836
Share

Originally posted by Ivanovich ↑

Tempo's was effectively is receiving a deferred payment of $33,000 for the Cable Logic acquisition. They paid $250K + $317K with rights to receive $600,000 , presumably the accounts receivable. As detailed in the presentation personal and accounting functions will be relocated to the Tempo offices. The average revenue for the last 3 years has been $15M PA. To assess the value of the deal one can refer to the recent acquisition of Datatel by Southern Cross Electrical, SXE. If we assume Cable Logic will generate $15M PA, and has the same EBITDA margins as Datatel of 7.58% TPP would have paid Initial Consideration of $4.13M, Deferred Consideration of $2.3M and Stretch Consideration of $5M if the same out performance targets were met. The calculations are on the basis that Cablelogic has 66% of Datatel's $22M revenue. The total that would have been paid by TPP would have been $11.43M . Caution this is a rough speculative estimate as we don't know what cash, accounts R and P, tangible assets, Datatel had on it's balance sheet. A second approach to the valuation is to take the projected $15M revenue and assume an EBITDA margin increasing to 9% for Cablelogic ( no Perth rent now, $150K - $175K a guess ?) and savings in integration of back office functions. At $15M Revenue that's $1.35M EBITDA at $20M revenue $1.8M EBITDA. At 10% DA and 30% TAX the range is $850K to $1.134 NPAT. On a PE of 8 that's $6.8M > $9.07M valuation for a company they were paid $33,000 to take over.

Expand

hi ivan,

Caution this is a rough speculative estimate as we don't know what cash, accounts R and P, tangible assets, Datatel had on it's balance sheet.

Expand

are you saying this is because you dont know, or because the company actually does not know?

one would certainly think that Temp would know prior to making any decisions so just asking in case...lol

TPP Price at posting: 29.0¢ Sentiment: Hold Disclosure: Held
Upvote

0 Great analysis

Reply

Top Stories

GRL

To make modern missiles, you need 3D Printing. And in that gold rush, Amaero is selling shovels

ME1

Banshee's historic trenches prove rich in antimony and gold for GDM

LYN

InhaleRX gains approval for clinical trial to test non-opioid therapy for cancer pain

HotCopper Highlights: Your most watched stocks for Week 46, 2024

BTH

Bigtincan's Board backs Investcorp offer: Why a NASDAQ listing could be game-changing

AUN

Cyclone signs MOU with Vale for development of Iron Bear play

AN1

CuFe sells its Crossroads gold royalty to Northern Star for $4M cash; says better than waiting for mine launch

Week 46 Wrap: Copper hits 2mth low as Trump threatens net zero pace; US rally fades; HotCopper’s picks

BNL

Blue Star Helium sees approval for five more wells at 'Galactica/Pegasus' project in Colorado

EDE

NT Gov't delivers environmental approval for Empire Energy's Beetaloo Carpentaria pilot gas play

There are more pages in this discussion • 15 more messages in this thread...

First 3 Last

Add TPP (ASX) to my watchlist

Valuing the Cable Logic Acquisition, page-3

Top Stories

To make modern missiles, you need 3D Printing. And in that gold rush, Amaero is selling shovels

Banshee's historic trenches prove rich in antimony and gold for GDM

InhaleRX gains approval for clinical trial to test non-opioid therapy for cancer pain

HotCopper Highlights: Your most watched stocks for Week 46, 2024

Bigtincan's Board backs Investcorp offer: Why a NASDAQ listing could be game-changing

Cyclone signs MOU with Vale for development of Iron Bear play

CuFe sells its Crossroads gold royalty to Northern Star for $4M cash; says better than waiting for mine launch

Week 46 Wrap: Copper hits 2mth low as Trump threatens net zero pace; US rally fades; HotCopper’s picks

Blue Star Helium sees approval for five more wells at 'Galactica/Pegasus' project in Colorado

NT Gov't delivers environmental approval for Empire Energy's Beetaloo Carpentaria pilot gas play