RE: Financial sage11 Oct 2024 13:48
There are positive and negative points in this deal, lets have a look at them:
Positive
- It looks a good deal paying £1.25M for a 2.1M turnover and £500K EBITDA, as normally is paid the turnover price.
- Synergistic transaction after the others acquisitions on looking forward on the integration
Negative
- Many may not agree but 13% interest on the loan, looks to me a bit on the expensive side
- raising £250K in warrants "to reduce debt from £950,000 to £600,000." to me is £700,000
- 250k warrants to get borrowing down, needs to find out if borrowing was higher than the 13% of the loan, otherwise is NOT a good deal.
- There is no mention if Bio-Tech was making any profit, I suspect NOT so that is a reason for paying less than I was expected.