360 million shares fully dilutedPHM paid way too much for Sleep management.
Total costs were $115 million in cash plus 42.75 million shares ar $1.50 per share.
This for $45 million in sales.
3 times sales is way too expensive.
If all of the new acquisitions close, Phm will generate $175 million in sales runrate and $44 million in Ebitda.
Assuming all follows form, at peer 6 times ebitda, fair value is about $265 million or about $0.76 per share.
Thats if everything works out as projected ... Which they rarely do.
Too much has been acquired too fast.
Its like Centric Health.
Get out and buy back in when the shorts cover... About $0.50