Australian (ASX) Stock Market Forum

SDF - Steadfast Group

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Value Hunter said:
Never mind the fact that this type of insurance broking is old school and is slowly becoming less relevant over time due to the younger generation using the internet to compare and purchase such things and also more comparison type sites, etc popping up. I think there are still more parts of the process which in the long-term can be automated and or off-shored making these types of brokers less relevant.
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- there is something about personal contact. These comparison sites are all very good, except that the full information is not disclosed, in many cases. And the ulterior action of harvesting data and trying to 'own' a relationship, by putting themselves in the middle and taking a clip must cost someone, along the line.
 
SDF is not a forum fav that's for sure. Since the last post SDF's price has traded sideways in a narrow range. It's clearly stronger than the index with price trading just under all time highs. A long trading range generally predicates a strong break-out and a move to a higher level. Perhaps +20% or so in this case based on prior levels.
 
peter2 said:
SDF is not a forum fav that's for sure. Since the last post SDF's price has traded sideways in a narrow range. It's clearly stronger than the index with price trading just under all time highs. A long trading range generally predicates a strong break-out and a move to a higher level. Perhaps +20% or so in this case based on prior levels.
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The "hello I'm making new all time highs as soon as the index stops going down" pattern in full effect on SDF.

Last stock I remember making this pattern was ELD in Apr 2020 just before it went on an 80% run.
 
JPMorgan and UBS have launched a $225 million equity raising for Steadfast Group, priced at $5.00 a share.

Investors were told Steadfast had a binding deal to buy Insurance Brands of Australia, a 41-year-old insurance distribution business focused on the SME sector. IBA had 400 insurance professionals across 70 locations, and expected normalised EBITDA around the $20 million mark for the 2023 financial year.

The total acquisition price was up to $301 million and Steadfast would pay the initial $276 million via scrip and cash.

Following the institutional placement, there will be a $25 million share purchase plan
 
Dona Ferentes said:
IBA had 400 insurance professionals across 70 locations, and expected normalised EBITDA around the $20 million mark for the 2023 financial year.

The total acquisition price was up to $301 million and Steadfast would pay the initial $276 million via scrip and cash.
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15 times EBITDA seems like a very steep multiple for to pay to acquire this type of business. I would assume write downs (goodwill impairment) will eventually come if they haven't already (I am not really following the stock so I haven't checked their announcements).
 

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