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So i was about to drop a 
on $BFT and my laptop crashed of course .... lost everything 
However given a lot have asked me my opinion on this, I will try to keep this sweet and to the point.
Foley is the right man for this job.
on $BFT and my laptop crashed of course .... lost everything However given a lot have asked me my opinion on this, I will try to keep this sweet and to the point.
Foley is the right man for this job.
He has an impeccable track record of scaling businesses but more importantly trimming the fat. $BFT is already large going over 100B$ in volume. $BFT is global and has many different tentacles. The problem is scale doesn’t always translate into growth I.e $GE
In my opinion what $BFT needs more than anything is to reduce debt , cut expenses drastically and focus on high growth areas. This is exactly what they intend to do. They’re I’ll focus on US Gaming which is expected to growth over 50%/year over the next 5 years.
When you move 100B$ of volume a year , the idea is not as much too line growth but EBITDA margin expansion. I think this is where most people comparing this to $SQ are wrong. $SQ is a growth story , but $BFT is a operating leverage story with growth and M&A as optionality
Cash uses for $BFT will mainly be used to reduce leverage , which is a must , because they are very leveraged. So the EBITDA gains they will receive over next two years are mainly from that, additional gains will surprise the market IMO, this is the opportunity.
Their client list is also filled with A1 names such as $DKNG and Roblox which are in a secular growth phase which could directly impact them longer term. Mgmt team is A+ , I listened to the webinar and they all came across as very capable of turning this company around
Now it’s EV will be 9B$ on day 1 if I remember correctly , but i think that’s low given the potential cost savings from debt repayment and unifying their API through Paysage Unity. Paysafe Unity will be their gateway to consolidating all their platforms I.e plug n play
Bottom line is you have a very capable management team in Foley , who will open the door to many new big customersSecond , You have a secular growth market in IGaming and E-Commerce Thirdly, trimming the fat will a have meaningful margin expansion impact
$BFT has the capability to become a unique payment processing integrator given its history in B2B and B2C which is very unique to them. They are in the right space , at the right time. Execution is the main risk here, given growth expectations are muted for 2021.
I will most likely do a starter positon next week and add on any weakness. This reminds me very much of $NVEI in Canada which I participated in the IPO quickly but didn’t held on which was a mistake in hindsight. I won’t make that mistake twice.
