Iselect buys Infochoice

[domainlover]

Iselect buys Infochoice for 33.5 miilion, in their 2010 results Infochoice only made 77k profit on sales of 2 million.

 

[Jonathan]

I guess I am missing something? Based on infochoice's own results, that means iselect is investing at a multiple of nearly 17 times annual earnings.

Seems crazy high - I guess iselect knows something we don't?

 

[Billy01]

17 times is nothing

you will start to see up to 25 times earnings for well known brands. Its a wee in the ocean for someone like Iselect. Infochoice is just perfect to be way bigger than Rate City as these boys realise

 

[Billy01]

73 % of Brits

Ha just heard an Iselect ad saying 73% of Brits compare and buy financial products online. Once Aust hits that penetration (which it will) seems like a pretty good purchase to me working on our population and credit dependency

 

[Chris.C]

I guess I am missing something? Based on infochoice's own results, that means iselect is investing at a multiple of nearly 17 times annual earnings.

Seems crazy high - I guess iselect knows something we don't?

My understanding is in when it comes to investments, earnings are based on profits not revenues.

So that would make their PE Ratio - 33,500,000/77,000 = 435!



They obviously believe that the infochoice business fits them well.

 

[DavidL]

My understanding is in when it comes to investments, earnings are based on profits not revenues.

So that would make their PE Ratio - 33,500,000/77,000 = 435!



They obviously believe that the infochoice business fits them well.

Yes I was going to say the same thing!

Whatever the case seems to be a lot of money flying around so get developing boys and girls!

 

[FirstPageResults]

Comparison website iSelect has now spent $33.5 million on the Infochoice, BidMyLoan and Once Life businesses, looking to expand its position as the leading aggregator of financial and household services quotes in the country.

http://www.smartcompany.com.au/fina...bidmyloan-and-once-life-for-33-5-million.html

 

[James]

My understanding is in when it comes to investments, earnings are based on profits not revenues.

So that would make their PE Ratio - 33,500,000/77,000 = 435!



They obviously believe that the infochoice business fits them well.

No but a lot of companies buy based on Billings too not just pure profit.

For example if they had a few million in billings then the company is valuable.

I mean these companies are big they are not just going to throw money at nothing they know what they are buying into.

 

[Oz.]

Iselect buys Infochoice for 33.5 miilion, in their 2010 results Infochoice only made 77k profit on sales of 2 million.

Great news, glad to know I am positioning myself in a HOT industry
...looking forward to receiving such an offer for my finance properties

 

[cherrytron]

Gees someone put the decimal in the wrong spot when they made that offer.

Then again, I said that about Google paying 1.6bn for YouTube.

*wipes mud from face*

 

[Chris.C]

For example if they had a few million in billings then the company is valuable.

The company is not valuable to anyone who doesn't have an ability to extract a greater profit margin from those revenues though, and often buyers like this can be hard to find and even if such people exist they are often unwilling to buy you out rather than let you (their competitor) go bankrupt unless you have something else of value.

I mean these companies are big they are not just going to throw money at nothing they know what they are buying into.

Lots of big companies piss money away all the time, especially online companies. I have no doubt that the vast majority of online mergers and acquisitions of this sort of nature turn out to be flops.

 

[GerBot]

that sale put a smile on my face

*gestures to signature*