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Boiler_Master

01/25/24 5:46 PM

#49848 RE: barmarty #49847

Leverage, you get a better deal. You would think buying 100% instead of 51% would cost double, but reality is you might have to pay 3 or 5x more.

Example: if you owned a computer company worth 1 million and Apple wanted to buy half of it, you would practically give it to them for free because you know they would grow your company ten fold in no time. So you go from owning 100% of a 1 mil company to owning 49% of a 10 mil company. But if Apple wanted to completely buy you out, you won't get a penny of that growth so you ain't selling it to them cheap. You tell Apple you know it's potential value to them is 10M so you want 5M, even tho it's only worth 1M today. And you weren't looking to sell in the first place so why give it up for only 1M?

It's also bc IQST is a holdings company. They aren't looking to completely take over these subsidiaries running day to day operations themselves. Leaving the current owners 49% keeps them in place as owners managing the company for IQST.

The bigger IQST gets, the better deals they'll be able to make when acquiring smaller companies, and the more companies they'll be able to buy.

Just look at Smartbiz and Whistl. They were acquired for 1.8M each and expected to do a combined 11.6M annual revenue. But in Q3 alone they did over 10M. Becoming part of a company that's 10x bigger than you has it's benefits.