RE:RE:RE:RE:SOC Telemed (TLMD) Acquired by Patient Square CapitalHotDiggityDogg wrote: Ok. Can you take an educated guess as to what the combined value of both types of assets would be for WELL? In case CEO was offered a buyout by different buyers for each part ( virtual and patient services ?)
the hypergrowth of Circle/WISP is the wild card. telehealth assets were trading at 10X Revenues during the height of the pandemic.
the other wildcard is that CRH and MyHealth can grow relatively quickly with some easy bolt-on acquisitions.
as of TODAY, spitballing a # would look
something like this. please take this with a grain of salt.
Circle/WISP - 4-5X Forward Revenue or $400MM-$500MM
CRH/MyHealth - 10X-15X EBITDA or $1bn-$1.5bn (this is the bulk of the business and I am assuming this is where the $100MM EBITDA comes from)
Sum = $1.4bn-$2bn
$6.75-$9.60 per share most analyst targets are hovering around ~$9 right now, so I think that is fair value. keep in mind that WELL has a lot of JVs whereby they don't own 100% of the asset so that needs to be accounted for.
recall I recently posted that CRH and MyHealth had around $300MM in purchasing power right now between cash and credit lines. CRH buys their businesses at 4X-5X EBITDA, so $300MM is $60MM-$75MM in purchased EBITDA. slap a 10X-15X multiple on that and that's $600MM-$1.1bn in incremental value or $3-$5 per share.
that's an extremely simplistic and generous calculation, but you can see how this company is primed to grow by way of M&A through the CRH arm.
the idea here is that they grow this business with debt and someone comes in and takes the company private or acquires them outright. they would pay out equityholders based on something like I've constructed above and they would assume all (or some) of the debt (hence why Interest is added back in an EBITDA calc ;)).
hope this helps.