@hajijohn, @oldelpasotacoshells
I struggle knowing how to assess whether a serial acquirer is adding value or just addding revenue. I'll freely confess that my valuation skills aren't as good as they could be but when there is no steady state with which to compare the "new" entity to, I get lost.
Sometimes the rationale is relatively easy to understand- I think wisetech's acquisitions were more about expanding into new Geographies, slowly converting the acquisition to their Cargowise platform and then allowing them to gain access and understanding of all the local requirements. The theory was this would be cheaper and quicker than trying to start from scratch. They were proved correct.
SaaS companies can also make a case that adding modules by acquisition also makes sense. A platform product can both attract new customers by having a more complete product, and also upsell to existing customers. Acquiring this function offers certain advantages over creating this product from scratch. You get new customers who can be up sold to, there is no delay in offering the new module, and there is no risk in successful development as it is already a successful product.
so potentially, BTH is actually being smart. They are creating a lead platform and adding proven winning modules to rapidly become one of the market leaders with the resultant reach and scale.
or they are just buying growth
Sadly, I can't tell, so also sold out some time ago. ????
Why didn't they just raise $2B and buy out every player in the market?
That way you can mask organic and inorganic revenue growth...
Is it normal for an offer such as the one offered by BTH to have the record date a day after the shares come out of trading halt?
I'm assuming the rise in share price today is partly related to shareholders accumulating more shares in order to be able to purchase more shares as part of the 1 to 4 offer since the record date is 7pm tonight.
In the past I've only been involved in offers in which the record date was before the shares came back onto the market.
Apologies if this is a simple question.
What does the 1 for 4 offer mean as part of the retail offer announced?
Thanks