Buyout conversation started with the article that
Post# of 32972
(Total Views: 537)
Posted On: 05/01/2018 11:58:40 AM
Re: saldivartx #3025
Buyout conversation started with the article that mentioned Oracle might consider buying out nFusz along the lines of anything is possible. I posted the section below. This is the time you would want to try to buyout a startup just as it's gaining traction and before the market cap would get into the billion which I believe it will this year. But, this is also a time where Oracle and other companies are looking at customers reactions. In all essence, Oracle was the unveiling of notifiCRM. It was a great opportunity to see the public reaction in masses and an opportunity for Oracle to see that reaction.
Rory addressed the buyout speculation in one of the SHAC. I forget exactly what he said, but I think it was something like of course we'll listen but it has to be an great offer and even then he would do what's best for the shareholders.
So let's say in round numbers the market cap is $250M which is way too low and a $1.50 a share. If someone came along and offered $6/share putting the market cap at $1B would they do the deal? I don't think. The sp will get to $6+ this year so why wouldn't you just wait for the $12 deal with a valuation of $2B. Not sure they would take that deal either, but you get the point.
There is another CRM company I've been following closely symbol HUBS. It has a $4B cap, PE ration in the 400 and was losing money until later last year.
Think about it, nFusz has the potential to be profiitable out of the gate with high margins and low overhead. Sure Rory could hire a ton more people and a big fancy office space, but he's running the business like you and I would and holding expense to the minimum with will cause the bottom line to explode in my opinion.
I posted before companies with a market cap of $500m being bought out with an annual growth of 20%. Night and day difference between those examples and nFusz that can have exponential growth. People could do some quick searches to see what tech companies are selling for and make do their own analysis. You also have to factor in that CRM is a very hot sector. Will be interesting to get Richard Bohn's take on this.
Rory addressed the buyout speculation in one of the SHAC. I forget exactly what he said, but I think it was something like of course we'll listen but it has to be an great offer and even then he would do what's best for the shareholders.
So let's say in round numbers the market cap is $250M which is way too low and a $1.50 a share. If someone came along and offered $6/share putting the market cap at $1B would they do the deal? I don't think. The sp will get to $6+ this year so why wouldn't you just wait for the $12 deal with a valuation of $2B. Not sure they would take that deal either, but you get the point.
There is another CRM company I've been following closely symbol HUBS. It has a $4B cap, PE ration in the 400 and was losing money until later last year.
Think about it, nFusz has the potential to be profiitable out of the gate with high margins and low overhead. Sure Rory could hire a ton more people and a big fancy office space, but he's running the business like you and I would and holding expense to the minimum with will cause the bottom line to explode in my opinion.
I posted before companies with a market cap of $500m being bought out with an annual growth of 20%. Night and day difference between those examples and nFusz that can have exponential growth. People could do some quick searches to see what tech companies are selling for and make do their own analysis. You also have to factor in that CRM is a very hot sector. Will be interesting to get Richard Bohn's take on this.
Quote:
nFusz Possible Acquisition Target
nFusz and the notifiCRM product will soon be fully integrated into Netsuite and Marketo. Under existing agreements, FUSZ receives 80 – 90% of the revenue. If this takes off after the launch in April, ORCL might consider an outright purchase of the company to protect themselves from any potential disruption in the market. As a takeover target, FUSZ is very attractive because most of its debt has been paid down and the balance sheet is clean. There is very strong insider sentiment because not one insider has ever sold a share. Instead the insiders are taking common shares over cash compensation, which shows their commitment to the underlying business. The CEO has laid the groundwork for an uplisting to NASDAQ or NYSE, which necessitated cleaning up the balance sheet, getting an independent board, raising capital, and generating significant sales volume. There are some marquee accounts that represent amazing opportunities like American Idol, Disney, Ubid, Accessory Geeks and Oru. Top technology influencer Rich Bohn will soon release an exhaustive review of the product, but in his preliminary review shared via social media, he stated that notifiCRM is a “game changer.” Will ORCL let this slip through their hands or snatch it up once it gains traction? Either way it looks this product has some incredible potential and ORCL with benefit whether it buys them or not.
(6)
(0)