Hey hey Flux fam!

Wanna learn some nifty savings hacks?! Read this. Then play our 1 minute savings quiz. You could win a $50 IKEA voucher 🏆

Here's everything you need to know today - in under 5 minutes.

Today's big stories: 

🛏️ Adairs acquires Focus on Furniture to take over your home

💲 Rest Super says its keen to explore investing in crypto

💑 Tinder's owner launches human matchmaking service

Oh and get this...

'Tis the season for sales. 82% of Australians plan to pull out their wallet in this year’s Black Friday sales, up from 43% in 2020. Take a deep breath before you purchase, Flux fam.

Linen lovers UNITE: Adairs is sick of flogging quilt covers so it's bringing in the furniture

Background: Adairs is the homewares retailer known for linen and bedding - the place you go when you wanna spruce up your bedroom sitch from COVID.

What happened: The bedding crew had a mighty good year last year. Their net profits were up 80% and revenue hit nearly $500m. Adairs have been on the hunt to grow further. Last year, they acquired NZ based retailer, Mocka. 

What else: And now, Adairs has acquired Focus on Furniture for $80 million in a play to expand into the furniture and bedding industry. The price equates to 2.4 multiple of Focus' EBIT for 2021.

So what's the key learning?

💡Valuing a company for an acquisition is part science, and certainly part art. One of the most common ways is to pay a 'multiple'.

💡You might pay a multiple of:

• The company's net profit from the last year
• The company's revenue from the last year
• Or the company's EBIT (earnings before interest and tax) from the last year.

💡Generally, each industry has its own 'multiple' based on opportunities for growth and scalability. Speaking of benchmarks though, Adairs acquired Mocka on an 8.5 multiple just last year, so it’s possible that Focus might be feeling a little short-changed. 

Rest Super wants to show it's down with the cool kids via a new interest in crypto investing

Background: Rest Super is one of Australia's largest superannuation funds with around 1.8 million members. They’re managing around $66 billion in funds for their members 

What happened: At their Annual General Meeting, Rest Super announced that they’ll be looking to dip their toes in the deep, deep crypto water. 

What else: Rest reckons it's important that its members have some exposure to a range of asset classes - including crypto - so that they can diversify their members’ retirement savings. Now where lambo, Rest?

So what's the key learning?

💡Diversifying your portfolio means investing in a wide variety of investments to reduce your investment risk. Ya know, "don't put your eggs in one basket".

💡Fund managers and investors, like Rest Super will try to diversify their investments across different asset classes (think: shares, real estate, bonds and now...crypto?).

💡With a diversified portfolio, it means you can weather the storm a lil' better if a catastrophic event takes place (*cough* COVID).

Tinder is launching a human matchmaking service so you can swipe right (or left) IRL

Background: Match Group is the leader in the digital dating field. They own over 20 e-romance businesses. We’re talking Tinder, Hinge, OKCupid and many more.

What happened: Match Group have upped their matching algorithm over the last couple of years. Now, they can match people based on their Spotify playlists, vaccination status...and passion for oat matchas (probably). But still, the people want more!

What else: Match Group is introducing a team of dating coaches that'll handpick top candidates just for you. It’s all part of their plan to create additional premium features for the free app.

So what's the key learning?

💡Freemium is a business model in which a company offers basic or limited features to users at no cost...and then charges a premium for advanced features.

💡Wanna swipe right to match with one person? That’s free. Wanna swipe right to 20 people across the South American continent? That’ll cost ya. 

💡Tinder had over 10.4m premium users last quarter but there are over 57 million active users on Tinder platform. Match Group’s task is to convert the other 47m Tinder users from their freemium version… to the premium.