RE:Market adjusting to the metrics of the purchase They got the target for 1/2 sales because it had lousy ebitda. Notice they only mentioned what the ebitda would be after integration. Small operators are hurting. Bodes well for the acquirers.
ramman1 wrote: As others note: The acquired company was purchased for 50% of rev. Normal benchmark would be 75%-80% . --- $ 370 per patient,normal benchmark,up at $ 450- $500 . It would appear a very solid payor network, with the package, and reasonably close close to other current clients for enhanced integration , and cross selling. --- Intially ,some might think this is no big deal on the account of high mobiliy % in the clients ,HOWEVER , that's precisely backward thinking . We want the ability to cross sell to respiratory for large internal growth, and this deal provides that . All good , and as the market digests this purchase,the only complaint will be that it is not larger in size, as the metrics are superb.