RushNet Inc (RSHN)

[RaetherEnt]

I wouldn't worry or speculate too much over where the money is coming from for this deal. As someone who has dealt with a LOT of business purchases and sales, I will say that it would be fairly easy for Rushnet to purchase this business for "little or no money down." Sound familiar?

The owners of the company to be purchased may have financed the deal themselves. I've done that before, and it is very advantageous for the seller. It takes a little bit longer for the attorneys and accountants to structure the deal that way, (Grays Brewery?) but it's a win-win for everyone IMO.
OR, anyone with a good business plan that makes sense can easily obtain money from a bank to help promote growth of a new or existing company. As far as a bank not financing a PINKY? Bullpucky. 95% of all the small businesses in America are much smaller than RushNet in terms of both sales AND scope, and they get financed all the time. I think for the first time in my life I can use the phrase "size doesn't matter", and actually mean it. :)

A fairly standard way to valuate a business is to take the previous years sales and multiply by 10. Obviously this isn't an exact science, and many other factors come into play, however, it's a good starting point. Considering that estimated sales for Garden Beverage in 2006 are $5.4 million, the estimated sales price (Big ball park) is around 50 million dollars! Lynch may have money, but the chances of him shelling that out are...(Many different phrases I could use, either way, it ain't gonna happen.)

Now that I've rambled on, I'll reiterate my main point by saying again, not to worry or speculate too much about how this deal will be funded. I've only mentioned two.

Also don't forget our increased value in the Meritage Beverages investment...

Once again, Corr and Co. never cease to amaze me. Slow, deliberate, careful planning is the way to build a company, and Corr is doing a great job IMO.

There has been a lot a talk about Corr's education and the direction of RushNet.

To end this I'll post a quote I've had on my wall for years, and truly believe...

"Nothing in the world can take the place of persistance.

Talent will not;
nothing is more common than unsuccessful men with talent.

Genius will not;
unrewarded genius is almost a proverb.

Education will not;
the world is full of educated derelicts.

Persistance and determination alone are omnipotent."

-Calvin Coolidge