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Multiples and Advice for Investing in Dark Companies


Guest Schwab711
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Guest Schwab711

What is a fair multiple for a "dark" but reporting company, assuming strong owner-operator management (controlling stake; votes don't matter) with a history of great capital allocation? What do you think is a fair multiple to expect (long-run) for a non-reporting dark company with same type managment? Do great companies who go dark usually take the company private or sell? Or do they just increase their salary?

 

I know each case is different, but I'm interested to hear what other folks experiences have been like. I've found several double-digit growth companies with high margins that are selling in the 4x-8x range. I'm just interested in how common going dark is done with shareholders interests in mind vs extracting more cash for management.

 

Other Q's:

Also, does anyone have any studies on dark/pink OTC returns?

Would anyone be willing to share their experiences investing in these types of companies?

What states/provinces are the most friendly for private minority investors?

Are there any major differences in laws between Canada and the US for minority shareholders of dark companies?

Does anyone have any experience bring a suit against a dark company to protect your rights?

Has anyone tendered or attempted to buy a small OTC company?

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