JR posted some sound reasoning. An acquisition can
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Posted On: 06/09/2019 11:17:11 AM
JR posted some sound reasoning. An acquisition can be done a number of different ways and the acquisition wouldn't close tomorrow.
VERB would be well into Q3 or even Q4 before closing. The company could take on debt and pay cash as JR said. We know Rory already mentioned taking on traditional debt. Be crazy not to as now is the time to accelerate the business.
Let's pick a number and say VERB is undervalued right now by a factor of 5. I am making up a number and people can determine on their own what the companies is worth. You could probably start by thinking about VERB, a the moment, has a market cap of $42M and bought a company for $25M with revenues ~1/2 that and growing.
Now let's say they are acquiring a company that is also undervalued by a factor of 5 or even 10? Would that be a fair deal?
What if the other company isn't undervalued, but they see the potential to grow like crazy and take less. If I had a company let's say was worth $5M, would I take less VERB shares if I could get a great return in the next year. Maybe.
With M&A activity, the possibility exist for the "M" as well. VERB could merge together with another undervalued company. Not a buyout, but a merger.
I believe the company will look a lot different a year from now and glad we have a bunch of smart people onboard.
VERB would be well into Q3 or even Q4 before closing. The company could take on debt and pay cash as JR said. We know Rory already mentioned taking on traditional debt. Be crazy not to as now is the time to accelerate the business.
Let's pick a number and say VERB is undervalued right now by a factor of 5. I am making up a number and people can determine on their own what the companies is worth. You could probably start by thinking about VERB, a the moment, has a market cap of $42M and bought a company for $25M with revenues ~1/2 that and growing.
Now let's say they are acquiring a company that is also undervalued by a factor of 5 or even 10? Would that be a fair deal?
What if the other company isn't undervalued, but they see the potential to grow like crazy and take less. If I had a company let's say was worth $5M, would I take less VERB shares if I could get a great return in the next year. Maybe.
With M&A activity, the possibility exist for the "M" as well. VERB could merge together with another undervalued company. Not a buyout, but a merger.
I believe the company will look a lot different a year from now and glad we have a bunch of smart people onboard.
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