RE: Adelicious earn out10 Jun 2026 07:54
Always thought £10m was far too much and still not over Dowgate being allowed to participate in the raise at a dirty price, could have easily funded smaller purchase price with debt. But now they have extra cash to play with
Also further proof timing of sales process was off if all the upside from the Adelicous deal is yet to happen and sector is going through transaction period with video. Kind of hard to justify a higher EV if you paid 0.5x
Q2 numbers are also not so good, the trading update was the bare minimum figure they could have reported. Says Q2 revenue will be the same as Q1 so upside of Spotify and Apple deals haven’t kicked in yet. Best to park this until end of the year as usual when the crème occurs, could be a whopper
Lastly this is third time they turned down offers and won’t be the last, obviously disappointing but not a bad position to be in if people repeatedly want to buy your business
As pointed out anyone buying now gets a free hit with takeover premium temporarily removed, it will come back over time
To be continued