NextPoint Financial, which owns the Liberty Tax business, said this month it probably “substantially” overpaid for its purchase of LoanMe. LoanMe was purchased on July 2 for about $102 million.The purchase price was comprised by $18 million in cash, $49 million in equity and the rest the assumption of LoanMe net debt. LoanMe offers personal, business and home loans ranging from $600 to $30,000. NextPoint's plan is cross sell LoanMe and Liberty Tax services.
According the NextPoint statement, a preliminary review determined some items used in deriving adjusted corporate EBITDA were incorrectly calculated. The EBITDA figures were utilized in calculating the purchase price.
NextPoint will undertake impairment testing on goodwill and other intangibles. The board of directors plans to review the causes of the miscalculation and determine if there is any recourse available.
