WELL Health Technologies Corp T.WELL

In what world is this metric - something smells

[SunsetGrill]

What is the ecact metric here? where someone buys a businwss for 20% of cash flow? The answer is a money losing business - there is no other possible rational. This does not pass the initial smell test and would like some more infol - just buying for the sake of buying then calling it growth, remiinds me of the old NORTEL days. Now dont read too much into that statement - am i missing something here; what metric is being used and are there past purchases to look at for reference?

Anyone? (Besides Buttcocks)

[Noshortsallowed]

If you look at this company they are experiencing losses. They just had to do a financing deal with a dodgey sounding lender.. Perhaps they have a tenuous debt situation and it's the only thing they can do to avoid filing for bankruptcy. The market cap would suggest that Onehealth is close to bankruptcy so this might be one last grasp of air before they make their final push to stay alive

[monty613]

$10MM is the sales revenues, not the clinic's cashflow. they paid $2MM which is likely a low multiple of earnings or cashflow. the idea here is that WELL layers in their tech assets, expands the clinic's service offerings, and cuts costs.

[SunsetGrill]

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[Capharnaum]

They purchased it from a company that was in need of cash. From their financial statements, it seems the gross margin for their clinics is about 27%. It's possible that WELL can onboard them with their platform and different services and increase that gross margin.

[Smokey1958]

Not quite the same dynamics but when WELL purchased the clinics in BC in 2018 it was done at ~ $3.86 million with an expected revenue of $8.5 million. I suspect that the margins are low but with the experience and technology now in the fold WELL will streamline the business side of this latest acquisition. Good doctors don't automatically equate to good business persons.