KLDiscovery Inc. (KLDI)

[HokieHead]

Refresher on what this company is about:

https://finance.yahoo.com/news/kldiscovery-unique-bet-data-getting-164651514.html

-KLDiscovery has been at the forefront of that business since it was co-founded by CEO Chris Weiler in 2005. Since then, the company has served an impressive client roster, including 65% of the Fortune 500 and 95% of the Am Law 100 firms. Those clients, who range from Apple to Starbucks, have shown a retention rate above 95%.

-Importantly, the SPAC sponsor’s CEO is legendary dealmaker Jonathan Ledecky. Mr. Ledecky, who is co-owner of the National Hockey League’s New York Islanders, has had a knack for successful rollups for decades.

-With the stock trading around $10, investors have a chance to own the business at a reasonable valuation of 10.7 times 2019 adjusted Ebitda. That is significantly below multiples for comparable companies such as 28 times for cloud software firm Blackbaud and 32 times for information management firm Tyler Technologies.

-Another plus: the data discovery business should thrive in good economies and bad. For instance, an uptick in Chapter 11 proceedings would trigger strong demand for bankruptcy work.