RE:RE:RE:RE:Desjardinsthinkyourmoney wrote: From what I understand from reading up on the acquisition of CRH is that it was bought not just as a medical addition but more because it is a cash cow. With lots of cash coming in WELL will not need to finance M&A but it will be done with the FCF created from the solid business of CRU.
What should become clear is whether WELL bought a regular cash cow or a blue ribbon cash cow. The initial reports from WELL management is tthat they have bought a blue ribbon cash cow and this quarterly report should make thiis clear to all investors.
We also have the added bonus that WELL also needs to report in the next 3 weeks so we get not one but two reports from different perspectives on this deal and on the impact that this acquisition will have on the future of WELL.
This is on top of the most recent acquisition announcement.
GLTA
you nailed it.
i am a long time CRH Medical shareholder who got into the stock knowing it would eventually get taken over or taken private. i transitioned everything into WELL as i truly believe the CRH business has a long runway for growth in its own right. and all the better now that it will trade under WELL's metrics.
i personally don't think the cross selling/synergies as a big as WELL would like you to believe, they just bought a cash cow which will help fund M&A. transactions are immediatelty accretive as CRH buys its targets at 4-5X EBITDA (non-public, local, regional businesses owned by doctors).
i expect CRH's Q4 to be good - it is historically their busiest quarter.
GLTA