By Kuldip K. Ambastha
On Wednesday, November 23, 2022, the stock price of Coupa Software Incorporated (COUP), a technology company focused on “Business Spend Management,” shot up by +28.9% per share. (See past coverage if needed: “What Caught Our Attention in the Investment World? – Week of March 14-18, 2022; By Kuldip K. Ambastha.”) The company may be acquired by a prominent private equity investment firm, in a buyout deal which could be funded through private credit lenders. While Coupa has easy to understand and easy to use offerings, the company has struggled in the recent past when looking at performance metrics such as sales, earnings, and adjusted net income. Nonetheless, perhaps the stock price of Coupa has fallen to such a level as to make a private equity buyout attractive with the strategy of buying at a discount, restructuring the company, and then selling it later for a premium.
Keywords – Coupa Software Incorporated, Coupa Software Inc., Coupa Software, Coupa, COUP, technology, tech, Business Spend Management, private equity, buyout, private credit, sales, earnings, adjusted net income, discount, restructure, premium.
Disclosure – The principals and clients of Ambastha Financial LLC have no positions in COUP.
Disclaimer – No recommendations are being made via this post. Past performance is not an indicator of future performance. As an investor, you should do your own research and seek professional advice from a Registered Investment Adviser (RIA). You can lose money by investing in stocks and other instruments. Ambastha Financial LLC does not assume any responsibility (legal or otherwise) for any losses that may occur as a result of actions taken based on this post. All content copyrighted © 2022 – Ambastha Financial LLC.
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