At least one report suggests they only acquired 10% of the company, which fits much better with the price.

NZ Companies Register is showing 100% ownership by Kogan Australia Pty Ltd.

Having had nothing but horrible dealings with Kogan, this might be the end of my Primate subscription.

LostBoyNZ:

 

Wow they only paid $127 million for it? And Mighty Ape estimates a gross profit of $47 million next year alone? At that good of a deal, I'm really surprised no one locally snapped them up.

 

TradeMe had a similar net profit (not the same as gross I know), but sold for NZ$2.56 billion.

 

I'm not sure where you get that $47 million from. The Australian Financial Review reports "Mighty Ape sells electronic games, board games, toys, homewares, collectibles and consumer electronics and is forecast to earn $14.3 million before interest tax depreciation and amortisation in the year ending March 2021 on revenues of $137.7 million"

$14 million is a far cry from $47 million.

Kyanar:

 

LostBoyNZ:

 

Wow they only paid $127 million for it? And Mighty Ape estimates a gross profit of $47 million next year alone? At that good of a deal, I'm really surprised no one locally snapped them up.

 

TradeMe had a similar net profit (not the same as gross I know), but sold for NZ$2.56 billion.

 

 

I'm not sure where you get that $47 million from. The Australian Financial Review reports "Mighty Ape sells electronic games, board games, toys, homewares, collectibles and consumer electronics and is forecast to earn $14.3 million before interest tax depreciation and amortisation in the year ending March 2021 on revenues of $137.7 million"

 

$14 million is a far cry from $47 million.

 

I read it at https://www.stuff.co.nz/business/industries/123588164/australias-kogancom-buys-mighty-ape-for-127-million 

"For the coming year, Mighty Ape was forecast to generate revenue of NZ$144 million and gross profit of NZ$47 million."

Gross profit and EBITDA are calculated differently, and so can be quite different figures depending on the contributing factors.

I suspect Covid has helped their numbers  a bit this year, as many people have more cash as not travelling overseas, and also purchased online. Also many feeling richer due to house price inflation.

Yeah a retailer with ~50% margins is not a real thing. That number will be revenue - Cost of goods sold, and include almost nothing else. 14.5m is an excellent result, and much more realistic for EBITDA

turtleattacks: 

I know that when he first started MA, he had to remortgage his house and put it up for collateral.

Pretty normal for SME business owner. Bank's won't lend much in that market without bricks and mortar security. 

In fact the housing boom has been a blessing for existing or potential business as it provides cheaper available of finance for businesses - a triple whammy, more likely to get bank approval, lower interest rates (as secured), and more flexible terms (up to 25 years to repay rather than 3-5 years)

mattwnz:

 

LostBoyNZ:

 

Wow they only paid $127 million for it? And Mighty Ape estimates a gross profit of $47 million next year alone? At that good of a deal, I'm really surprised no one locally snapped them up.

 

TradeMe had a similar net profit (not the same as gross I know), but sold for NZ$2.56 billion.

 

 

 

 

Exactly. Would have been a good investment for many. Wonder why they didn't list it on the stock exchange. It was almost NZs equivalent of Amazon, and had good potential. We know how well Amazon stocks have done. Could have been a good investment for mum and dad investors instead of just buying houses. Such a pity. 

 

IMO we should do more to keep good successful companies in NZ ownership, even if they get listed on the NZX. 

 

Doesn't look like such a good buy IMO - $127m for $10m EBITDA (from what I've read) so they must be expecting some good future growth being part of the Kogan family.

Too many regulations/requirements to list on the sharemarket. There's so much money floating around looking for a home, any good business will be able to get some investor without having to jump through the hoops of the NZX. That explains the lack of IPO's for a long time and I would be wary of the reasons of any that do list (i.e. why couldn't they attract some private equity firm to invest?)

Disappointed that a place that has offered great customer service is now owned by one that was dishonest enough to try selling people "shipping insurance" when placing orders to make sure that people got what they paid for.

And I just renewed a years primate 2 days ago when sending my twitter secret santa gift.

mattwnz:

 

I read it at https://www.stuff.co.nz/business/industries/123588164/australias-kogancom-buys-mighty-ape-for-127-million 

 

"For the coming year, Mighty Ape was forecast to generate revenue of NZ$144 million and gross profit of NZ$47 million."

 

Gross profit is largely irrelevant in this context. Company valuations are generally based on multiples of sustainable net profit expressed as Earnings before Interest and Tax (and maybe Depreciation and Amortisation). EBIT/EBITDA.

Mighty Ape RIP 😞

They have one of the best customer services in New Zealand and I didn't mind paying a premium for that, but I have a feeling that it's all going to be downhill from here.