When you speak of the co. being a possible acquisition target, you have to remember that with this industry, unless a co. has proven track record, a prominent name w/in the industry, or a good customer base, an acquiring co. wouldn't likely be interested in buying the co. outright, but rather its product lines (i.e., its technology).
And even at that, I'd wonder if there is a buyer is willing to pay anything substantial at all for them, as the logic in this situation is that the Accugraph's products were of high value, you'd see increasing revenue (the converse is true, also - if there was a solid market for the co.'s products, the product lines would be of value to an acquirer).
The next possibility is that the co. has great products or technologies that be of value to an acquirer, but no customers. Then, and only then, could I see an acquirer buy the technology outright, but obviously it would be either for their own use w/ no intent to market it or they'd see an opportunity to add value to the product(s), and possibly make them attractive to the market. But if the latter case is true, then once again it speaks to ACCUF's mgmt.'s inability to successfully make a go of it.
Unless the co. has something hot in the pipeline, what makes the co. of value at this point in time? Anyway I look at the co., I don't see anything there. Please share comments if you think I'm missing something. |
