WELL Health Technologies Corp T.WELL

not overpaying for clinics

[Possibleidiot01]

You can't say they are overpaying.

"WELL's clinic recruitment and absorption program has demonstrated substantial growth and capital efficiency. In Q4 alone, WELL has added two Canadian clinics generating approximately $28 million in annualized revenues for total consideration of less than $400,000 . These clinics are expected to positively contribute to EBITDA in 2024. This includes the addition of the Manitoba Clinic, the largest privately operated clinic in the Province of Manitoba . Overall, WELL's clinic recruitment and absorption program has now resulted in five clinics joining WELL's network in 2023 and generating more than $33 million in annualized revenues for total consideration of less than $400,000 pipeline of clinic 'absorption' candidates includes 13 clinics which are currently under LOI. WELL's regular non-absorption M&A pipeline of clinics and targets currently includes WELL's regular non-absorption M&A pipeline of clinics and targets currently includes approximately 30 clinics and targets under LOI.

[Possibleidiot01]

What should  that $400,000 tell us ? That these clinics are not currently profitable and probably have terrible returns . So "WELL has initiated an enterprise-wide cost optimization initiative, with a focus on improving cost efficiency and improving operating cashflow. It is expected that the Company will leverage a multitude of strategies including tech enablement, robotic process

[FishBC]

It also says that it routinely improves efficiencies within those clinics that those improvements typically achieve a 20 to 30% gross profit. It also says that those clinics will be accreative to EBITDA.