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Technology Stocks : INPR - Inprise to Borland (BORL) -- Ignore unavailable to you. Want to Upgrade?

To: Mark Bracey who wrote (294)	6/22/1998 8:36:00 PM
From: David Miller	Read Replies (1) \| Respond to of 5102

It is interesting to speculate what type and size of service organization is on Del's shopping list. A rough valuation of these types of business is normally more than 2x revenues - the recent acquisition of Claremont was around 3.5x trailing, but the company was growing strongly. Per-head revenues would be around $100k in a profitable company, so a company of 200 people works out at $20m in revenues and an acquisition cost of $50m to $70m, depending on profitability. I am beginning to believe this may not be the best option for the company right now, given their current share price coupled with the uncertainty associated with mergers of this type - how many people will stay in the new configuration, how quickly they can assimilate the new business model etc. It may be time to re-assess the go-it-alone strategy. There is still a small but finite window of opportunity to resurrect a channel-based model. david