If document software firm Nitro can shift its revenue up soon, its current $US360 million price tag would be a veritable bargain for its potential buyers when the next IPO window eventually opens, writes Adir Shiffman.
Potentia suddenly found itself shut out of due diligence and facing a Nitro board recommending Alludo’s offer., where chairwoman Yasmin Allen’s three-person committee declined to intervene. Regardless, Alludo’s scheme failed anyway and Potentia further demands due diligence access.predilection for beaten down ASX-listed tech businessesLocal investors have abandoned these burners, but the buyout specialists fixate on their proximity to material free cashflow and smell a bargain.
This growth would have pleased most investors, but the $US15 million cash outflow was more divisive. Those now allergic to cash burn considered it a big red flag, while others noted that operating outflow had improved steadily to almost breakeven in the December quarter. Potentia and Alludo likely view Nitro through this latter prism, with a clear if painful path to $US100 million of revenue, $US15 million or more of free cash, and sustainable revenue growth of at least 20 per cent.
Hitting these numbers is no sure thing but if Nitro could do it soon, the current $US360 million price tag would be a veritable bargain when the next IPO window eventually opens.Right now, Alludo is in the diplomacy phase as its tries to convince more shareholders to sell. If successful, it will then face the next problem of what to do with a 50 per cent stake, particularly if Potentia is still in there and seeks to maximise disruption.
Alternatively, small shareholders can stay in the middle of the perilous road hoping for a higher bid while at risk of being squashed by the same price collapse bulldozer confronting directors.is executive chairman of Catapult Sports and a serial investor and entrepreneur.
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
PM won't be drawn on the future of NSW PEP-11 gas projectOn the campaign trail ahead of the NSW election, Anthony Albanese refuses to be drawn on the future of a gas licence after a decision to cancel it by Scott Morrison triggered legal action.
Read more »
Battle lines drawn over director protections in new climate regimeA legal opinion by one of Australia’s top experts on climate financial risk says new disclosure laws should not expose directors to new liabilities.
Read more »
Aussie underdog to launch protest after denied world title: ‘Unbelievable’Liam Wilson’s corner will launch a protest after he was denied an incredible underdog boxing world title, beaten by favourite Emanuel Navarrete despite flooring the Mexican in the fourth round. 7NEWS
Read more »
How Aussie keeper Alex Carey plans to master the tricky Indian conditionsKeeping in India isn't easy, but Australian gloveman Alex Carey has a plan that he believes will help him handle life on the subcontinent.
Read more »
Bitter blow as Aussie bowling stocks crumbleBreaking news 👀 More injury trouble for the Aussies.
Read more »
Aussie basketball icon Lauren Jackson’s career ends in tears after 62 secondsLauren Jackson’s unrivalled basketball career appears to have ended on a heart-breaking note after the Opals legend suffered a likely Achilles injury in her WNBL tribute match. 7NEWS
Read more »