RE:RE:Telus Health MergerHotDiggityDogg wrote: I agree and ever since the weakness in the market have been suspecting something like this to happen. WELL would be an excellent choice for Telus but my question is, if CRH doesn't fit ( I agree it doesn't ) and given that CRH is a big part of WELL's revenue ( financial health ), what value would someone like Telus give WELL without CRH. The biggest attraction would be EMR's but how do you put a price on that ? Just curious. Finally what would CRH be worth on its own and would be worth any more than what WELL Bought it for ? Thanks in advance
the good thing is that WELL has siloed all of their assets, so CRH or MyHealth can and could be divested individually. it is hard to price the entire company because they own primary care, specialty care/diagnostic imaging, EMR, and telehealth assets.
they bought both CRH and MyHealth for 9-10X EV/EBITDA. clinical services providers in the US trade for upwards of 15X-20X and primary care providers trade at 10X-15X. granted these are much bigger companies ($2bn Market Cap +).
WELL recently announced that CRH was on track to deliver $43MM in EBITDA for 2021 which is fairly flat performance YOY. we will see how conservative the company was when Q4/FYE earnings come out.