Post by
ramman1 on Aug 23, 2021 10:20am
Market adjusting to the metrics of the purchase
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.
Comment by
lscfa on Aug 23, 2021 10:35am
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.
Comment by
Trademark11 on Aug 23, 2021 10:42am
Yup, HTR's EBITDA was 30% at takeover and reflected in the cost last year
Comment by
Moogul on Aug 23, 2021 4:20pm
They've been putting money to work over the last month and this was a very good deal. ive heard most of the negativity around this name lately being related to not doing aquisitions.... well... are you not entertained!