How Xero’s start-up buyout went from $31m to zero within three years
Xero’s total write-down in the value of its recent acquisition of Waddle, shocked some - not least Commonwealth Bank - but a buyer could still be found.
If accounting giant Xero and start-up Waddle were movie stars, their two-and-a-half year marriage would be normal by Hollywood standards. But breaking up after less than three years and writing it all off is not the way things usually work in the world of corporate takeovers.
In making this very choice, new Xero CEO Sukhinder Singh Cassidy has flicked the switch on formally incinerating $31 million of cash at a retrospective rate of at least $30,000 a day.
Loading...
Adir Shiffman is executive chairman of Catapult Sports and a serial investor and entrepreneur. Connect with Adir on Twitter.
