Avalara IPO: The Goodwill Is An Opportunity

Avalara IPO: The Goodwill Is An Opportunity

Summary The company has acquired several competitors all over the world. As a result, the goodwill seems elevated. If the merger integration is done properly, the revenue growth could continue. The company‚Äôs share price does not seem very high. The EV/2019 Forward Revenues equals 3.4x. The revenue increased by 73% in the last two years; it reached $213 million in 2017. Avalara expects to sell 7.5 million shares at a maximum offering price per share…

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Avalara: Undervalued IPO Opportunity

Avalara: Undervalued IPO Opportunity

Summary Avalara, a Seattle-based vendor of tax compliance software, has filed for a $150 million IPO. Initially priced at $19-21 per share, Avalara is indicating an opening valuation of $1.3 billion. The company would be valued at just 4.3x forward revenues, an attractive valuation profile against a field of extremely expensive recent IPOs. The company is selling 7.5 million shares in the offering, or just over 11% of its total market cap. The IPO is…

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